Savers’ paid 11% less into workplace defined contribution (DC) pension schemes as Coronavirus hit the UK, new ONS data shows.
Employee contributions fell by 11% between Q1 (January to March) and Q2 (April to June), while employer contributions were down by 5%.
Workplace DC membership held firm at 23 million at the end of June 2020 – the same figure recorded three months earlier.
Tom Selby, senior analyst at AJ Bell, comments:
“With the UK currently in the grip of the second wave of Coronavirus, we are now getting a clearer view of the impact the first wave of the pandemic had on people saving for retirement.
“Inevitably the national lockdown hit savers hard, with employee pension contributions down 11% and employer contributions 5% lower.”