New research highlights need to develop savings rules of thumb

The Pensions and Lifetime Savings Association (PLSA) comments on The Investing and Saving Alliance (TISA)’s report, ‘Getting Retirement Right: Plan, Prepare, Enjoy.’

Lizzy Holliday, Head of DC, Master Trusts and Lifetime Saving at the Pensions and Lifetime Savings Association (PLSA), said:

“The Investing and Saving Alliance (TISA) has added an important body of work to the debate surrounding how people achieve an adequate income in retirement.

“The PLSA broadly supports TISA’s recommendations. As laid out in our 2018 Hitting the Target report, increasing automatic enrolment (AE) contributions to 12%, lowering the age at which AE kicks in to 18 and removing the lower earnings limit will give people a much better chance of achieving financial security in later life.

“TISA’s research supports our own modelling, in line with the Retirement Living Standards, which concludes that contributions of 12% are necessary to help many more people achieve a moderate living standard in retirement.

“The ongoing debate about adequacy, coupled with low levels of saver engagement, presents an emerging opportunity for the pensions industry to establish some simple rules of thumb for the savings rates required to reach each of the minimum, moderate and comfortable Retirement Living Standards. The PLSA will now be seeking to work with our members and the rest of industry to reach a consensus, to take the Retirement Living Standards to the next level to assist savers.”

ENDS

Mark Smith, Senior PR Manager
 020 7601 1726 |  [email protected]k

Steven Kennedy, PR Manager
 020 7601 1737 | 07713 073024 | [email protected]