Our annual publication, Retirement saving in the UK, looks at the pension saving experiences of people who have been enrolled into Nest. With a sample that includes around a third of the UK working population, it’s one of the largest empirical studies of pension saving behaviours in the UK. As part of this series, we’ll also share supplementary reports that shine a spotlight on specific challenges facing defined contribution pension savers.
Following on from How the UK Saves, previously produced with Vanguard, our third annual report, Retirement saving in the UK 2020 (PDF), examines the savings behaviours of over 9.5 million Nest members between April 2019 and September 2020. During this time, the second and final planned increase in minimum auto enrolment pension contributions took place, increasing total contributions from 5% to 8% of band earnings, and the Covid-19 pandemic resulted in a number of restrictions and national lockdowns which had a significant impact on the saving behaviours and financial wellbeing of people in the UK. In both cases, many observers predicted that significant numbers of people would stop saving for retirement, yet to date our data suggests otherwise.
The story is one of continuity. Even through turbulent times, members have continued to save in the same way, with millions believed to have benefited from the buffering effect of the UK government’s Coronavirus Job Retention Scheme (CJRS). Nest has also continued to provide a safe harbour for members’ retirement savings, with 5 year annualised returns performing above benchmarks (as at 30 September 2020).
- View the report: Retirement saving in the UK 2020(PDF)
- Read our press release: Auto enrolment remains resilient through pension contribution rise and global crisis
If you’re interested in collaborating with us on this research programme, please get in touch: email@example.com
We’re proud to have worked with leading experts at Vanguard’s Center for Investor Research to produce How the UK Saves, a series of annual reports and supplements examining the behaviours, demographics and likely retirement outcomes of millions of UK workers saving with Nest.
Vanguard has had great success using administrative data from large defined contribution arrangements to explore the experience of people saving in pension systems around the world. Other publications in the series include How America Saves and How Australia Saves. Visit vanguard.co.uk to find out more.
- How the UK saves: The effects of the second savings increase (PDF) Published June 2020
- How the UK Saves 2019: Member experience from the National Employment Savings Trust (Nest) (PDF) Published October 2019
- How the UK Saves: Effects of gender on retirement savings behaviour (PDF) Published September 2019
- How the UK Saves – the effects of phasing (PDF) Published February 2019
- How the UK Saves 2018: Member experience from the National Employment Savings Trust (Nest) (PDF) Published June 2018
- How the UK Saves: Essentials of the UK Retirement System (PDF) Published October 2019
- Vanguard and Nest Insight publish How the UK Saves 2019 (Press release) Published October 2019
- How the UK Saves: Effects of gender on retirement savings behaviour (Press release) Published September 2019
- How the UK Saves: The effects of contribution phasing (Guest blog) Published April 2019
- How the UK Saves: sharing insights (Blog) Published July 2018
- Nest Insight and Vanguard launch inaugural ‘How the UK Saves’ report (Press release) Published June 2018