Around 5.5 million people are saving more because of pension freedoms, says Aegon

The study from Aegon, the life insurance, pensions and asset management company, found that more than 5.5 million people in the UK are contributing more to a private or workplace pension because of the reforms.

This increased level of saving is reflected in the growth of UK retirement pots. On average, UK adults have £50,000 saved in pensions, up from £29,000 in April 2015, Aegon said.

An Aegon spokesman said: “In addition to these positive steps, the pension freedoms have also directly prompted more people to consider their future plans.

“Fifteen per cent of people have realised they need to plan more for retirement, up from 10 per cent in April 2016 and the proportion of people engaging with an adviser on their plans for retirement has almost doubled in the last 12 months.”

Steven Cameron, the pensions director at Aegon, said: “The 2015 pension reforms put many more retirees in the driver’s seat for the first time. Two years on and all the signs point to the pension freedoms having paved the way for a smoother road to retirement. People have moved up a gear, saving more and becoming more engaged with their pensions.”