61% of education workers rely on workplace pension for a golden retirement01 July 2015 Back to results
- Over half (61%) of workers in the education sector see their workplace pension as their main source of retirement savings
- Despite this, on average they only have £33,000 saved into their company pension scheme, among the lowest in the survey
- As much as three in five (64%) have no idea what their employer is contributing
Aegon UK’s third Readiness report investigates how ready people working in a range of professions are for the retirement they want.
Importance of workplace pensions
A significant number (61%) of education professionals consider their company pension to be their main method of retirement saving, just behind healthcare (67%) and financial services (69%) workers.
However, half (48%) admit to never having checked the performance of their retirement savings, three in five (64%) are unaware how much their employer is contributing, and two in five (41%) don’t know how much they’re putting in themselves.
Nearly two in five (17%) people who work in the education sector said that they would be willing to increase their pension contributions beyond the new auto enrolment contribution rate of 5% of salary that will be enforced from 2018.
When it comes to the income people hope to receive in retirement, those working in the education sector have relatively high expectations, and want to receive £38,000 per year. However this is significantly above the £11,000 they are on course to receive and 21% more than an average teacher’s salary of £30,000.
By 2018 the state pension age will be 65 for both men and women. According to Aegon’s survey, education professionals expect to retire at 64, four years earlier than today’s state pension age for a thirty year old.
Angela Seymour Jackson, Managing Director Workplace Pensions, Aegon UK said: “Workplace pensions are clearly a hugely important part of retirement plans for those in the education sector. However, it’s worrying that so many are not engaged with what they have saved so far or how much of an income it will provide them in the future. Teachers and lecturers may well use their final salary scheme as a safety blanket, but others in the sector face a possible shortfall of £27,000 in retirement expectations at current saving levels. The prospect of living longer, means workers in this sector could be in for a nasty shock in retirement. There needs to be more attention on giving people access to view and manage their workplace retirement savings online or on their mobile. Employers are well placed to support people get ready for retirement and our new service Retiready, provides a digital interface that employers can use to give their employees more control over their pension.”
How other professions stack up
Monthly retirement savings by profession
£234 Banking & financial
£74 Creative arts & design
£95 Social care & guidance
Pension pots by profession
£43k Engineering, manufacturing & production
£40k Banking & financial
£38k construction & property
|Profession||Average Readiness Score|
|Advertising, marketing and PR||49%|
|Animal and plant resources||50%|
|Banking, financial management and accountancy||54%|
|Charity and voluntary work||50%|
|Construction and property||48%|
|Creative arts and design||49%|
|Engineering, manufacturing and production||54%|
|Hospitality and events management||47%|
|Human resources and employment||49%|
|I am unemployed||38%|
|Profession||Average Readiness Score|
|Insurance and pensions||56%|
|Law enforcement and protection||54%|
|Leisure, sport and tourism||50%|
|Management and statistics||57%|
|Media and broadcasting||41%|
|Mining and land surveying||57%|
|Publishing and journalism||47%|
|Retailing, buying and selling||48%|
|Social care and guidance work||49%|
|Transport, logistics and distribution||52%|