New analysis from PensionBee shows that savers are contributing more to their pensions in 2021, with the average monthly contribution amount growing by 32% compared to the first half of 2020.
The leading online pension provider has also found that the amount women are saving has grown faster than that of their male counterparts. Monthly contributions from its female customers increased by 44%, with the average monthly contribution in H1 2021 reaching £446, compared to £309 during the same period last year.
Women are also keeping more of their money invested, with average withdrawal amounts decreasing by 12%, from £8,253 in H1 2020 to £7,279 during the same period in 2021. This is despite research highlighting that women have been disproportionately affected by the pandemic, and are more likely to have been furloughed than their male counterparts (52.1%), even though they make up 47.3% of the UK workforce.
Overall, male customers continue to make bigger contributions to their pensions per month than women, with the average monthly contribution for males reaching £625 in H1 2021. This is compared to £488 during the same period last year, representing growth of 28%. On the other hand, men’s withdrawals have increased slightly (by 1%) in 2021, from £10,935 in H1 2020 to £11,035 in H1 2021.
This latest data follows a similar trend identified by PensionBee in April 2020, which highlighted lockdown periods as having a significant effect on savers’ contribution and withdrawal rates. Those who can afford to make larger contributions to their pensions are saving significantly more, while those over the age of 55 are generally withdrawing less and keeping more of their pension savings invested.
PensionBee CEO, Romi Savova, comments: “It’s promising to see consumers continue to take a cautious approach of saving more and spending less, as we move out of an extended period of lockdowns. As always, we would encourage those who have a larger disposable income to continue saving where possible, and for those in retirement to keep as much of their pension invested until the exact moment they need it to ensure they’re well-positioned for a happy retirement.”
Table 1: Year on Year pension contributions
Source: PensionBee, July 2021. Based on 39,455 contributions in H1 2020 and 78,549 contributions in H1 2021.
Table 2: Year on Year pension withdrawals
Source: PensionBee, July 2021. Based on 1,421 withdrawals in H1 2020 and 1,513 withdrawals in H1 2021.