More than 4 million additional workers saving into pensions in last four years

The latest figures from the Department for Work and Pensions (DWP) show that since 2012, the number of people saving into a workplace pension has increased by 4.4 million.

This means that in 2015 nearly 7 million people have now saved more than £82 billion into workplace pension schemes, with even more expected to have been saved in 2016.

Of those eligible employees, 79 per cent have saved into a workplace pension in at least three of the last four years, which demonstrates that take up has been fairly well maintained.

By 2018 more than 10 million people are expected to be paying into a workplace pension, generating around £17 billion a year more in workplace pension saving by 2019/20.

This new data comes as the government announces its review into the automatic enrolment regime in 2017, which will explore the ways in which the policy can be further developed to encourage more people to save.

The review will assess the existing coverage offered to employees and consider the needs of those not currently benefiting from automatic enrolment so that more people can access workplace pensions.

This will include a review of the current automatic enrolment thresholds, in particular the earnings trigger, qualifying earning bands and the age criteria. It will also include further exploration into how the growing number of self-employed workers can be helped to save for their retirement.

Damian Green, Secretary of State for Work and Pensions, said: “Saving into a workplace pension allows workers to benefit from both contributions from the government and their employer. New research out today highlights that nearly £82 billion was saved into pensions last year, of which almost 60 per cent was contributed by employers.

“This level of saving has been bolstered by the contributions from employers who have already enrolled their staff.”

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Posted in Professional News.