XPS warns higher pension contributions risk driving more savers to opt out

• Raising pension contributions alone risks worsening retirement outcomes by pushing financially stretched savers to opt out, Gordon Bown warned.
• Newly enrolled workers opting out rose to around 11%-12% from 10% a year earlier, according to Department for Work and Pensions data.
• Around 90% of eligible employees save into workplace pensions, but high participation does not ensure adequate retirement income.
• Median earners need total pension contributions exceeding 14% of earnings to meet updated adequacy benchmarks, the Resolution Foundation estimates.
• Proposed reforms include temporary contribution reductions, emergency savings alongside pensions and protection for salary sacrifice to help workers continue saving.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. XPS Pensions Group plc published the original content used to generate this news brief on October 26, 2026, and is solely responsible for the information contained therein.