The Department for Work and Pensions (DWP) has published its latest statistics on workplace pension participation and savings trends.

Commenting, Rebecca Williams, Financial Planning Divisional Lead at Rathbones, one of the UK's leading wealth and asset management groups, says:

“The latest workplace pension figures are a timely reminder that automatic enrolment has been one of the UK's most successful pension reforms. Since its introduction in 2012, it has helped millions more people start saving for retirement while benefiting from valuable employer contributions that might otherwise have been missed."

“The fact that around nine in 10 eligible employees are now saving into a workplace pension is a significant achievement. With employers accounting for more than 60% of workplace pension saving, automatic enrolment continues to play a vital role in improving long-term financial security."

“However, the conversation now needs to move beyond participation and focus on pension adequacy. Getting people into pensions was only the first step. The bigger challenge is ensuring they are saving enough to achieve the retirement they want."

“Our research suggests today's Generation Z could require pension wealth of more than £3 million for a comfortable retirement, or around £2.4 million when applying the 4% withdrawal rule. While these figures may seem daunting, they reflect the reality of longer life expectancy, inflation and rising living costs over time."

“It's also notable that opt-out rates have edged higher. Cost-of-living pressures continue to squeeze household finances, making long-term saving harder for some people to prioritise. Meanwhile, lower participation among some groups and employees working for the smallest businesses shows there is still work to do to make retirement saving truly universal."

“Too many people still treat pensions as a 'set and forget' product, despite them often being among their most valuable financial assets. Automatic enrolment has normalised pension saving. The next step is to normalise pension engagement, helping people understand whether they are on track, review contributions regularly and make informed decisions throughout their working lives. Otherwise, too many risk reaching retirement only to discover they have saved too little, too late.”