"Contributions today in defined contribution pensions are below the level required from 2018, and the generous defined benefit pensions in the private sector appear to be in terminal decline."
Its warning comes as pension figures published today by the ONS demonstrate the "continued success of automatic enrolment", with active occupational pension savers at the highest level for over 30 years.
The data shows that private sector active membership is now on a virtual par with public sector active membership, but Aviva highlights that as the ONS figures exclude group personal pension arrangements, the private sector is actually expected to exceed public sector participation.
However the figures also show the continual decline in the active membership of defined benefit pensions in the private sector. Today there are 1.6 million active members of private sector defined benefit occupational pensions, down from 3 million in 2006.
If this rate of decline was to continue in the years to come, Aviva estimate that active membership of defined benefit occupational pensions in the private sector will reach zero by 2024.
This would have "significant implications for the health of retirement savings in the UK", according to the provider.
While the average contribution in a defined contribution occupational pension scheme currently sits at 4%, the average contribution in a defined benefit occupational pension scheme currently sits at 21.2%.
Steve Webb, Director of Policy at Royal London, has described the 4% contribution as a "shocking figure".
Webb added: "A combined contribution rate of three or four times this size is likely to be needed for most workers to be able to secure an adequate income for a comfortable retirement. It is quite clear that mass membership of pension schemes through automatic enrolment is just the start of a very long journey.”
While these figures are above today’s legal minimums, the legal minimum rises to a total of 5% in 2018 and then 8% in 2019.
Alistair McQueen, Saving & Retirement Manager at Aviva, said: “There is a lot to be celebrated in today’s pension figures. Saving in a workplace pension is now typical behaviour in the UK. If a full-time employee is not active in a workplace pension they are in the minority.
“There is however no room for complacency. Contributions today in defined contribution pensions are below the level required from 2018, and the generous defined benefit pensions in the private sector appear to be in terminal decline. While higher levels of participation represent a big step in the right direction, attention must also focus on the adequacy of savings amongst the millions who are now contributing."
