Even if it hasn’t affected you yet, you have probably heard about Automatic Enrolment by now.
Automatic Enrolment started with larger employers in October 2012 and the adverts, with workers shouting “we’re all in”, have been hard to avoid. But you probably don’t know how Automatic Enrolment is revolutionising workplace pensions and how it is helping huge numbers of people plan for their retirement.
The Office for National Statistics has recently revealed six facts which illustrate how successful Automatic Enrolment has been and why you can’t afford to miss out.
Fact #1: More people than ever are now in a workplace pension
In 2012, when Automatic Enrolment was launched for employers with large workforces, 47% of employees were a member of a workplace pension.
After just 18 months this has risen to 59%.
Fact #2: More young people are planning for retirement
Younger people are less likely to have a pension, with the pressures of student debt, finding work and getting on the housing ladder, the temptation to put off planning for retirement, which is decades away, is often strong.
However, since 2013, the percentage of younger workers, aged 22 – 29, with a pension has increased from 37% to 53%.
In fact, the increase in the number of younger workers with a pension is higher than any other age band.
Fact #3: More low earners are now planning for retirement
The largest increase in workplace pension membership has come from those people earning between £10,000 and £15,000 per year; up from 24% in 2013 to 43% in 2014.
Fact #4: Workers in larger firms are more likely to be in a pension
As we’ve already said, Automatic Enrolment started with larger employers, it therefore makes sense that this is where the largest rise in pension membership has been seen.
For businesses with 500 – 999 employees, workplace pension membership has risen from 51% in 2012 to 76%, whilst for the larger firms it has risen from 58% to 79%.
Fact #5: More manual workers are now in a workplace pension
The figures show that the largest increase to workplace pension membership came from process, plant and machine operatives, with 52% now signed up, compared to 34% in 2012.
Those people in sales and customer service roles weren’t far behind, with an increase from 28% in 2013 to 42% in 2014.
Fact #6: It’s not just London which has seen a high take up
London has seen the highest number of workers sign up for a workplace pension, up from 52% in 2013 to 63% in 2014, however North East has also seen an 11% increase.
Whilst the East and West Midlands have fared well, with 10% more employees now in a workplace pension.
We’re here to help
If you are an employee and would like advice about whether or not to join a workplace pension, or you are an employer and you need to auto enrol your staff, we’re here to help.
Call Sarah or Bev today on 0115 933 8433, alternatively, email firstname.lastname@example.org