Core Insights - UK savers are significantly under-contributing to pensions, with a need for an additional £23 billion annually to meet the recommended 12% contribution rate [1][5] Group 1: Contribution Levels - Analysis of HMRC data reveals that private sector workers contribute an average of 3.63% of their salary to private pensions, resulting in only £16 billion being saved out of the £38.7 billion needed annually [2] - Many individuals in their 40s and 50s are still contributing only between 3.3% and 4.3% of their salary, despite having fewer mortgage obligations [5] Group 2: Auto-Enrolment Issues - Self-employed workers are not automatically enrolled in pension schemes and often prioritize business investments over retirement savings [3] - The auto-enrolment framework only calculates contributions on earnings between £6,240 and £50,270, leaving higher earners under-contributing [3] Group 3: Recommendations and Implications - Pensions UK suggests that raising average pension contributions to 12% could provide an average retirement income of £31,300 per year for UK taxpayers [4] - The disparity between recommended savings and actual contributions is concerning, highlighting the need for increased awareness and action among savers [4]