Automatic enrolment has been enormously successful at getting people into pensions.
The harder question is whether the amount being contributed will be enough.
Around 82% of UK employees were members of a workplace pension in 2024, according to the latest ONS figures. Yet Scottish Widows’ 2026 Retirement Report estimates that 31% of people – around 12.2 million adults – are currently on course for less than a minimum retirement lifestyle.
Participation, in other words, isn’t the same as adequacy.
The Minimum Isn’t a Recommended Maximum
For many automatically enrolled employees, the statutory minimum is an 8% total contribution on qualifying earnings, including at least 3% from the employer. Importantly, this can be calculated only on earnings between £6,240 and £50,270, rather than every pound of salary.
That makes “I’m paying the standard amount” a poor substitute for actually considering the retirement income it might produce.
There is another reason to check: employer matching.
Some companies will increase their own contribution if an employee contributes more. Royal London research published in 2026 found that only 37% of employees currently take advantage of pension contribution matching. If your employer will put additional money into your pension when you increase your contribution, ignoring the offer could mean leaving a valuable employee benefit unused.
Small Changes Get Time to Work
Increasing contributions doesn’t have to mean jumping from 5% to 15% overnight.
An extra 1% following a pay rise, bonus or promotion may feel relatively modest today but has potentially decades to be invested. The earlier additional money enters the pension, the longer it has the opportunity to grow.
Of course, pensions are long-term savings and accessibility matters. Building emergency savings and dealing with expensive debt can also be priorities.
