Automatic enrolment yields nine million pension pots

Automatic enrolment yields nine million pension pots

Automatic enrolment has led to more than nine million people receiving workplace pensions in the UK, Department for Work and Pensions (DWP) statistics have revealed.

The figure puts the government on track to achieve its 2018 target of 10 million workers to be newly saving or saving more into a workplace pension as a result of automatic enrolment, which came into force in 2012.

Commenting on the DWP statistics, Matthew Burrell, a senior policy adviser at the Pensions and Lifetime Savings Association (PLSA), said: “With nine million more people now saving in a workplace pension, automatic enrolment has made pension saving part of everyday life. This milestone shows how close we are to the successful completion of staging: the process of making sure almost all UK businesses offer a workplace pension.”

“Our focus now should be on raising contributions. People need clear communication from government that minimum contributions will rise in April next year and about the importance of staying in their pension scheme.”

Minimum contributions are set to rise next year, from employer and employee payments of 1% of a salary each, to 2% and 3%, respectively.

A government review of automatic enrolment is expected to be delivered before Christmas.

Categories: News, UK Pensions

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