Employee Benefits News
Auto-enrolment passes half-million mark
More than half a million UK employers have now set up auto-enrolment pensions for their employees, according to the latest figures from The Pensions Regulator (TPR).
The regulator´s Declaration of Compliance report shows that 503,178 employers had completed their workplace pension duties by the end of March 2017. As a result, more than 7.6 million workers are now saving for their retirement after being put into a workplace pension since the initiative was launched in 2012.
Between January and March 2017, 136,000 small and micro employers complied with their auto-enrolment responsibilities — an average of one every 57 seconds. A further 600,000 are due to start enrolling staff into a workplace pension this year.
Pensions Minister Richard Harrington commented:
“These impressive new figures show that by setting up a workplace pension, employers are getting their staff on the road to a financially secure retirement.
“But there are nearly a million employers out there who still need to enrol their staff and I would encourage them to take up the support on offer from The Pensions Regulator. Pensions can seem daunting, but there is a wealth of information available to help you get set up.”
In total, around 1.3 million to 1.4 million UK employers have automatic enrolment duties to meet.
Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. The policy was introduced to address under-saving, with millions of workers not putting aside enough for retirement and only one in three private sector workers paying into a workplace pension.
A study published by the Department for Work and Pensions in December 2016 estimates that by 2019/20 there will be an extra £17bn of workplace pension saving per year as a result of auto-enrolment.
Copyright M2 Bespoke 2017
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