64% of tech professionals rely on workplace pension for life after jobs

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  • IT workers have the greatest annual income expectations in retirement
  • They’re largely dependent on their workplace pension for this, with two thirds (64%) seeing it as their main source of retirement saving
  • Yet a quarter (25%) don’t even know how much of their salary they’re contributing to their company pension

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 pension 

Company pensions play a major role in retirement provisions for IT professionals, with almost two thirds (64%) of workers saying it’s their main method of retirement saving. They come just behind financial (69%) and healthcare workers (67%). 

IT professionals are also among the most engaged with their workplace pensions, with nearly one in three (29%) reviewing their retirement plans in the last six months. In contrast, only one in ten (12%) administrative workers had done this. 

Those working in the IT sector have the most ambitious expectations, aiming to receive £50,000 per year, but this is desperately out of reach of the £25,000 they are on course to receive annually and 24% higher than the sectors average salary of £38,000.

However, a quarter (25%) of IT professionals claim to have no idea how much of their salary they’re contributing to their company pension. Additionally, two in five (43%) do not know how much their employer is contributing to their pension either. This lack of awareness could have implications for their retirement expectations. 

On a positive note, a third (32%) of people who work in the IT sector said that they would be willing to increase their pension contributions beyond the new auto enrolment minimum contribution of 5% due to be enforced from 2018. 

Retirement expectations

By 2018 the state pension age will be 65 for both men and women. According to Aegon’s survey, IT professionals expect to retire at 63, five years ahead of the state pension age for today’s thirty year olds.

Angela Seymour Jackson, Managing Director Workplace Pensions, Aegon UK said: “It’s encouraging to see IT professionals having relatively good engagement with their pensions compared to other professions. However, the expectations they have for their retirement age and annual retirement income appear at odds with reality. To avoid shock in retirement, workers in this industry either need to begin increasing their contributions or reign in their ambitions about their retirement expectations. There needs to be more attention put 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 pension.”

How other professions stack up

Monthly retirement savings by profession

£467 IT

£234 Banking & financial

£144 Healthcare

£74 Creative arts & design

£95 Social care & guidance

Pension pots by profession

£44k IT

£43k Engineering, manufacturing & production

£40k Banking & financial

£38k construction & property

£30k Healthcare


Profession Average Readiness Score
Administration 49%
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%
Education 50%
Engineering, manufacturing and production 54%
Environment 48%
Healthcare 50%
Hospitality and events management 47%
Human resources and employment 49%
I am unemployed 38%
Information services 58%
Profession Average Readiness Score
Information technology 55%
Insurance and pensions 56%
Law enforcement and protection 54%
Legal profession 50%
Leisure, sport and tourism 50%
Management and statistics 57%
Media and broadcasting 41%
Mining and land surveying 57%
Performing arts 47%
Publishing and journalism 47%
Retailing, buying and selling 48%
Scientific services 58%
Social care and guidance work 49%
Transport, logistics and distribution 52%