Pensions. I know, dull, dull and more dull right? Correct. Unfortunately, pensions are about to become like unwashed dishes in the sink – visually unavoidable, uncomfortable smelling and constantly in your face as you walk past them, nagging you to deal with them. Monday is the start of the much heralded and overly written about auto-enrolment. Starting a pension will no longer become a case of “yes please” if you want one but rather “no thanks” if you don’t.
I’ve already written about the challenge of selling this to 7m people, but it’s just worth considering why the Government is doing this. To round out the week, here’s a few numbers which hopefully tell the story behind auto-enrolment. Alternatively, you can watch the new promo adverts for auto-enrolment on YouTube:
8.2 million – that’s the number of people who have a workplace pension. That’s less than one in three adults
£20,000 – that’s what people want to live off each year in retirement
£11,000 – that’s what people think they’ll actually have each year in retirement. That’s a £9,000 gap
82.3 years – that’s the average life expectancy of a girl born today in the UK. It’s rising by nearly 3 years every decade
£400,000 – that’s how much money a woman needs to buy £20,000 a year of income in retirement
Just to reiterate that last one – £400,000. Or to put it another way, that’s the cost of this mansion in Northern Ireland.