In Quarter 3 2024, pension coverage remained greatest among workers aged 45 to 54 years at 80%, up three percentage points from 2023. It remained lowest among younger workers with 27% of workers aged 20 to 24 years having some form of pension coverage.
For employees with occupational pensions from their current employment, the number with ‘defined benefit’ pensions decreased in 2024 (26% compared with 30% in 2023), while the number with ‘defined contribution’ pensions increased to 69% from 66% in 2023.
For those workers with no occupational pension coverage from their current employment, over half (53%) of workers stated that their employer does not offer a pension scheme, up three percentage points on the same period in 2023.
Of workers with no supplementary pension cover, more than four in ten (43%) stated they never got around to organising it or would organise it at a future date, while for almost half (48%) aged 55 to 69 years, affordability was the main reason given.
The State Pension was cited as the expected main source of income on retirement for over half (52%) of workers with no pension coverage. One-quarter (25%) had not yet decided how they would fund their retirement.
Almost three in ten (29%) of employees aged between 23 and 60 who are eligible to be auto-enrolled in the Government Auto Enrolment Retirement Savings Scheme, were aware of it. Some 72% of these employees would be willing to remain in the scheme.
In the 2024 survey, questions on awareness of and interest in partaking in the Government's planned Auto Enrolment Retirement Savings Scheme were included in the survey questionnaire (also included in the 2022 and 2023 surveys). Under this scheme, which is due to commence in September 2025, workers who do not have an occupational pension will be automatically enrolled in a new retirement savings scheme if they are aged between 23 and 60. The employer and the State will also contribute to the retirement savings scheme on their behalf. More information on this planned Government scheme is available in the Background Notes.
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Statistician's Comment
The Central Statistics Office (CSO) has today (19 December 2024) published the results of the Pensions Survey which was carried out in Quarter 3 (Q3) 2024.
Commenting on the release, Maureen Delamere, Statistician in the Social Modules Division, said:
“The results in this release cover pension provision outside of the State Pension. Of the people in employment in Q3 (July, August, and September) 2024, more than two-thirds (67%) had pension coverage of some form, outside of the State Pension.
Pension Coverage by Age
Pension coverage in 2024 followed the same trend as in 2023, where pension coverage was lowest among younger workers. More than one-quarter (27%) of workers in the 20 to 24 years age group had pension coverage of some form in 2024. Of those aged 20 to 24 years, males (31%) were more likely than females (24%) to have supplementary pension cover of some form.
Interestingly, the number of people taking out supplementary pension coverage increases with age. Three-quarters (75%) of the oldest age group surveyed, people aged 55-69 years, had supplementary pension cover. Most supplementary pension cover is with Defined Contribution (69% of pensions) rather than Defined Benefit (26% of pensions). Just 4% had hybrid pension schemes (neither a full Defined Benefit scheme nor a full Defined Contribution scheme but has some of the characteristics of each).
For older workers aged 55 to 69 years, there is only a marginal difference between the number of male (43%) and female workers (44%) who had spent 20 years or more in their occupational pension scheme.
Pension Coverage by Broad Occupation Group/Economic Sector
Analysis of pension coverage by broad occupational groups shows that workers whose occupation was classified as Professionals had the highest pension coverage rate at 84%, whereas just 43% of workers whose broad occupational group was Skilled Trades had pension coverage. The economic sectors of Public Administration & Defence and Compulsory Social Security had the highest pension coverage in Q3 2024 (95%), while the lowest coverage was in the Accommodation & Food Service Activities sector (24%).
Reasons Given for Having No Supplementary Pension
Of employees who had no supplementary pension cover, more than four in ten (43%) stated they never got around to organising it or would organise it at a future date. Three in ten (30%) cited the affordability of pensions as the main reason for not having pension cover, while one in nine (11%) said they were not offered a pension in previous employments.
Analysis by age group shows that for people aged 55 to 69 years, affordability was the main reason for not having any form of pension cover (48%), while for younger workers aged 20 to 24 years, the main reason was they never got around to organising it or would set one up at a future date (52%).
For workers (including self-employed), the State Pension was cited as the expected main source of income on retirement for more than half (52%) of people with no pension coverage, while one-quarter (25%) had not yet decided on this issue. Some 7% of older people aged 55 to 69 years had not yet decided on their main source of income on retirement.
Planned Government Auto-Enrolment Scheme
Awareness of the Government Auto Enrolment Retirement Savings Scheme, which is due to commence in September 2025, increased in 2024. At an overall level, some 28% of workers were aware of the Government planned scheme, up ten percentage points on the same period in 2023. Of respondents who will be eligible to be automatically enrolled in the planned Auto Enrolment Retirement Savings, almost three in ten (29%) were aware of the planned retirement savings scheme, and of these, some 78% whose current employer does not offer pension cover, said they would stay in the scheme if automatically enrolled in it. The scheme will be aimed at workers aged between 23 and 60 with no occupational pension cover from their current employer.”