In the 1980s, only around 40–45% of working‑age people paid into any private pension, and only about half of employers offered a pension scheme at all. Today, because of auto‑enrolment, around 88% of employees are in a workplace pension and over 85% of employers provide one. Pension coverage is far higher now than it was in the 80s.
The real looming issue isn’t that people aren’t paying into pensions, auto‑enrolment means the vast majority now do. The problem is that the UK has a much smaller young workforce and a rapidly growing older population. Fewer workers are supporting more retirees, which puts long‑term pressure on the State Pension, the NHS, and social care. This is exactly what the ONS, IFS, and OECD have been warning about for years.
Younger people today often say they can’t afford to pay into a pension, and there’s truth in that, their disposable income is tighter than older generations had at the same age. But it’s also true that today’s standard of living and expectations are much higher: more holidays, more eating out, more subscriptions, more tech, and a general lifestyle that simply didn’t exist in the 80s or 90s.
The real structural issue isn’t pension participation anymore, it’s the shrinking young workforce and the rapidly growing older population. Fewer workers supporting more retirees is the real long‑term pressure on the system.