Fewer than a third (30 per cent) of defined contribution (DC) pension scheme members believe they will have enough money in retirement to live comfortably in later life, analysis from TPT Retirement Solutions has shown.

Two fifths of DC scheme members expected to have sufficient savings to cover their basic needs in retirement, while just 29 per cent believed their pension pots would last throughout their retirement.

TPT said its research backed the findings in the Pension Commission’s Interim Report, which found around 15 million people were under saving for retirement.

It added that this suggested many DC scheme members shared the commission’s concerns around the scale of the retirement savings challenge in the UK, and indicated there would be “broad public support” for measures aimed at improving retirement outcomes.

The firm said its findings should give policymakers confidence to pursue bold reforms to improve retirement adequacy.

“Our research shows that the public agrees with the experts,” commented TPT Retirement Solutions head of policy & external affairs, Ruari Grant.

“Last week the commission highlighted the scale of the under-saving problem, and while we might often imagine people are unaware of this, that is not the case, meaning the commission has a clear mandate to pursue meaningful reforms.

“Automatic enrolment has created strong foundations for retirement saving in the UK, but at current contribution levels many savers will still face inadequate outcomes in retirement. The focus should now turn to ensuring the pensions system delivers the retirement people expect and deserve.”

While TPT welcomed the commission’s focus on decumulation, it warned that improving retirement outcomes was not just about increasing contributions, but also ensuring the pension system would deliver an adequate retirement.

“Good retirement outcomes do not simply depend on how much people save during their working lives,” Grant said.

“Savers also need straightforward, reliable ways to access and use their pension savings in retirement, without having to navigate unnecessary complexity or make difficult financial decisions alone.

“The debate has moved beyond encouraging people to save. The challenge now is ensuring the system people are saving into is capable of delivering a lasting retirement income.”

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