Millions more saving thanks to pension automatic enrolment

April 9, 2015   //   No Comments

Figures released recently show that nearly 5.2 million workers have been enrolled into a workplace pension scheme by their employer as part of the government’s revolutionary reform, automatic enrolment.

The policy has heralded a new era in workplace pension saving, bringing to an end what had been a decade-long decline in the number of people who were putting something away for their retirement.  Automatic enrolment was launched in 2012, initially with the largest businesses enrolling their staff into a workplace pension scheme into which the employer, worker and the government would make contributions. The process has since rolled out to medium-sized business and will reach small and micro employers from June this year.

By 2018, when the roll-out is complete, it is expected that up to 9 million people will be newly saving or saving more, giving them a greater sense of economic security and peace of mind in retirement.  New pension freedoms are due to kick-in in April 2015 giving savers unprecedented access to their cash. With millions more now saving from an earlier age, people will be much better placed to take full advantage of these freedoms and use their savings in the way that suits them and their family.

Automatic enrolment has taken the hassle out of the process for the employee and figures show that around 9 out of 10 people who have been automatically enrolled do not opt out of their scheme. The latest figures released by The Pensions Regulator recently show that nearly 45,000 employers have now automatically enrolled their staff.