Total pension savings up on back of Auto-Enrolment but many firms are missing their staging dates
Figures published recently by the Prudential have shown a significant increase in the total amount put away by UK workers towards their pension pots, despite many firms missing their auto-enrolment staging dates.
UK workers’ pension contributions last year amounted to more than £9.3 billion – a 17 per cent increase on the 2010/11 tax year and the second highest figure in the last 25 years. Prudential has said that these figures “can be attributed in part to the initial success of auto-enrolment in encouraging more workers to save for their retirement.”
The firm added that auto-enrolment “immediately began to reverse a trend that had seen the total number of pension savers in the UK fall by 32 per cent from 7.8 million to 5.3 million in the 10 years to the end of the 2011/12 tax year. By April 2014 the figure had recovered to more than 6.4 million.”
The news comes at the same time as research from NOW: Pensions that shows that 40 per cent of firms that registered with them did so close to or after their staging date deadline, putting them at risk of steep fines totalling up to £500 per day.