Molly Broome
@mollybroome.bsky.social
Research and Policy Lead at Nest Insight
The proportion of people who start saving but then opt out within the opt-out period has been trending upward over time. This may reflect increased cost of living pressures in recent years or could be linked to the freezing of the earnings trigger and lower earnings limit.
July 31, 2025 at 12:09 PM
The proportion of people who start saving but then opt out within the opt-out period has been trending upward over time. This may reflect increased cost of living pressures in recent years or could be linked to the freezing of the earnings trigger and lower earnings limit.
Pension participation also varies by ethnicity. Only 68% of eligible Pakistani and Bangladeshi employees were saving into a pension in 2022-23 to 2023-24, compared to 87% of eligible White employees.
July 31, 2025 at 12:09 PM
Pension participation also varies by ethnicity. Only 68% of eligible Pakistani and Bangladeshi employees were saving into a pension in 2022-23 to 2023-24, compared to 87% of eligible White employees.
Just 17% of the self-employed were participating in pension saving in 2023-24, down from 21% in 2009-10.
July 31, 2025 at 12:09 PM
Just 17% of the self-employed were participating in pension saving in 2023-24, down from 21% in 2009-10.
Eligible part-time employees are also less likely to be saving into a workplace pension, compared to full-time employees. That gap has widened over time.
July 31, 2025 at 12:09 PM
Eligible part-time employees are also less likely to be saving into a workplace pension, compared to full-time employees. That gap has widened over time.
Workplace pension participation also increases with earnings: 79% of eligible employees earning £10k-£20k were saving into a workplace pension, compared to 94% of those earning £70k or more.
July 31, 2025 at 12:09 PM
Workplace pension participation also increases with earnings: 79% of eligible employees earning £10k-£20k were saving into a workplace pension, compared to 94% of those earning £70k or more.
But employees working for small employers were less likely to participate in workplace pension saving: only 59% of eligible employees at companies with fewer than 5 employees were saving into a workplace pension.
July 31, 2025 at 12:09 PM
But employees working for small employers were less likely to participate in workplace pension saving: only 59% of eligible employees at companies with fewer than 5 employees were saving into a workplace pension.
Around eight-in-ten (82%) employees in Great Britain were saving into a workplace pension in 2024 – this amounts to 23.3 million people in total.
July 31, 2025 at 12:09 PM
Around eight-in-ten (82%) employees in Great Britain were saving into a workplace pension in 2024 – this amounts to 23.3 million people in total.
This highlights a fundamental question for the review: should policy aim to deliver full adequacy for all, or act as a foundation that leaves space for individual choices and top-ups? The Pensions Commission was clear that it should be the latter.
July 15, 2025 at 10:58 AM
This highlights a fundamental question for the review: should policy aim to deliver full adequacy for all, or act as a foundation that leaves space for individual choices and top-ups? The Pensions Commission was clear that it should be the latter.
In response to adequacy concerns, there have been calls to increase default contributions above 8%. But policymakers must proceed with care. While higher rates might help middle and higher earners reach their TRRs, they risk leading to over-saving among lower earners.
July 15, 2025 at 10:58 AM
In response to adequacy concerns, there have been calls to increase default contributions above 8%. But policymakers must proceed with care. While higher rates might help middle and higher earners reach their TRRs, they risk leading to over-saving among lower earners.
But while participation is up, adequacy remains a concern. Recent @theifs.bsky.social research shows that 39% of private sector employees are not on track to meet their target replacement rate (TRR) – the level needed to maintain living standards in retirement.
July 15, 2025 at 10:58 AM
But while participation is up, adequacy remains a concern. Recent @theifs.bsky.social research shows that 39% of private sector employees are not on track to meet their target replacement rate (TRR) – the level needed to maintain living standards in retirement.
And third, the capital rules potentially discourage individuals from saving, reducing their financial resilience. In the two years leading up to March 2023, 12% of UC recipients that could afford to save said they avoided doing so due to the risk of losing benefits.
April 24, 2025 at 10:26 AM
And third, the capital rules potentially discourage individuals from saving, reducing their financial resilience. In the two years leading up to March 2023, 12% of UC recipients that could afford to save said they avoided doing so due to the risk of losing benefits.
Second, the capital thresholds have been frozen since 2006, meaning many more recipients now face reduced or lost entitlements. In 2006-08, 35% of working-age families in Britain had savings above £6,000, by 2020-22, this had risen to risen to 45%.
April 24, 2025 at 10:26 AM
Second, the capital thresholds have been frozen since 2006, meaning many more recipients now face reduced or lost entitlements. In 2006-08, 35% of working-age families in Britain had savings above £6,000, by 2020-22, this had risen to risen to 45%.
There are some very wealthy families in this group: 12% (240,000 families) had capital between £50,000.01 and £100,000, and 16% (315,000 families) held over £100,000. But nearly half (47%) had relatively modest capital of £16,000 or less.
April 24, 2025 at 10:26 AM
There are some very wealthy families in this group: 12% (240,000 families) had capital between £50,000.01 and £100,000, and 16% (315,000 families) held over £100,000. But nearly half (47%) had relatively modest capital of £16,000 or less.
We estimate that nearly 2 million families who were eligible for UC based on their income in 2020-22 saw their entitlement reduced due to the capital rules, with 830,000 families facing a partial reduction and around 1.2 million losing their entitlement entirely.
April 24, 2025 at 10:26 AM
We estimate that nearly 2 million families who were eligible for UC based on their income in 2020-22 saw their entitlement reduced due to the capital rules, with 830,000 families facing a partial reduction and around 1.2 million losing their entitlement entirely.
In the UC system, the first £6,000 of a family’s capital is disregarded. Any savings between £6,000.01 and £16,000 are subject to a ‘tariff income’ of £4.35 per month for every £250 of capital. Families with savings exceeding £16,000 are ineligible for UC altogether.
April 24, 2025 at 10:26 AM
In the UC system, the first £6,000 of a family’s capital is disregarded. Any savings between £6,000.01 and £16,000 are subject to a ‘tariff income’ of £4.35 per month for every £250 of capital. Families with savings exceeding £16,000 are ineligible for UC altogether.
Households headed by someone aged 65-74 saw their financial wealth increase by £3,300 in real terms between 2018-20 and 2020-22, compared with a smaller increase of just £800 for households headed by someone aged 25-34.
January 24, 2025 at 5:26 PM
Households headed by someone aged 65-74 saw their financial wealth increase by £3,300 in real terms between 2018-20 and 2020-22, compared with a smaller increase of just £800 for households headed by someone aged 25-34.
Regional wealth gaps also fell thanks to strong house price growth outside London and the South East.
January 24, 2025 at 5:26 PM
Regional wealth gaps also fell thanks to strong house price growth outside London and the South East.
Prior to the pandemic, absolute non-pension wealth gaps were rising. The gap between average non-pension wealth in the top decile and fifth decile grew by £210,000 (2006-08 to 2018-20) to £1.2m, but narrowed slightly to £1.1m in the latest data.
January 24, 2025 at 5:26 PM
Prior to the pandemic, absolute non-pension wealth gaps were rising. The gap between average non-pension wealth in the top decile and fifth decile grew by £210,000 (2006-08 to 2018-20) to £1.2m, but narrowed slightly to £1.1m in the latest data.
Total household wealth continued to grow faster than the size of the economy – a trend dating back to the mid-1980s. Total household wealth reached £13.6 trillion in the 2020-22, equivalent to 610% of GDP, up slightly from 590% in 2018-20.
January 24, 2025 at 5:26 PM
Total household wealth continued to grow faster than the size of the economy – a trend dating back to the mid-1980s. Total household wealth reached £13.6 trillion in the 2020-22, equivalent to 610% of GDP, up slightly from 590% in 2018-20.