The number of people in defined contribution pension schemes has overtaken the number of those in private sector defined benefit schemes for the first time.
The Association of British Insurers surveyed 3,117 people aged over 18 in paid employment and found that 4.7 million people are saving in DC pensions compared to 3 million in a private sector DB scheme.
The survey also found that 7.9 million people are not saving anything for their retirement while 4.3 million are not saving enough.
Forty four per cent of people believe it is unlikely that the Government’s plans to introduce a new system of personal accounts and auto-enrolment will happen and only 30 per cent think it is likely they will do so.
ABI director of life and pensions Chris Kenny says: “These major pieces of research show that the broad direction of travel on pension reform is right. But there is still a long way to go both to encourage more saving and to get the details of Personal Accounts right. Over 12 million people are still not saving enough for their retirement, and many do not believe that the Government’s plans to increase saving will ever be enacted.
“In this context, it is even more vital that the Government takes action to ensure that existing private pension provision, which serves millions of people well, is allowed to prosper and grow.”