Workie says: ‘Don’t ignore the Workplace Pension’November 3, 2015 // No Comments
A new character recently hit TV screens as a campaign is launched aimed at smaller employers and their employees.
The campaign aims to change the country’s perception of pensions in the workplace with Workie visiting people in all sorts of work environments over the coming months, asking them not to ignore him. The humorous ads come with a serious message. While automatic enrolment into workplace pensions has been rolling out across the UK since 2012, it is only now that 1.8 million small and micro employers are being required to take action to help their staff to save for later life. In a phased process over the next 3 years, every employer will have to enrol their eligible staff into a pension scheme by law.
Automatic enrolment has already fundamentally changed the way society approaches saving into workplace pensions. Instead of opting in, as was the case in the past, all qualifying employees of large and medium-sized firms are now automatically enrolled by their employer provided they are over the age of 22 and earn more than £10,000 a year. This means that, as well as paying in themselves, their employer also makes a contribution to their financial future. Figures show that only around 10% of people who are automatically enrolled are choosing to opt out, significantly fewer than was expected when the policy was first developed.
As a result the total amount that is expected to be saved each year by 2019/20 has been revised upwards to about £15 billion – more than a third more than the previous estimate of around £11 billion.