One million UK employers have enrolled staff into a workplace pension, helping more than nine million employees save towards retirement.
The new figures, released by The Pension Regulator, show that over 600,000 employers have complied with their duties in the past year alone.
However, the deadline is approaching for the remaining 150,000 employers to enrol their staff by June 2018. This includes new businesses set up since the government scheme was launched.
Currently, to be automatically enrolled into a workplace pension, you must be aged 22 to State Pension age and earn at least £10,000 per year. In return for employees contributing a minimum of one per cent of their pay, employers will at least match it, with most savers benefitting from tax relief on their contributions.
Research recently published by the Department for Work and Pensions (DWP) highlighted how workplace pensions have become ‘the new normal’ revealing that small and micro employers – which represent 98 per cent of all UK businesses – are finding automatic enrolment ‘necessary’, ‘sensible’ and ‘easier t implement than first expected’.
In addition, 83 per cent of eligible workers now see saving through a workplace pension as the normal thing to do if you are in paid employment.
Speaking about the findings, Guy Opperman, Minister for Pensions and Financial Inclusion, said, “With one million employers – from the small sandwich shop owner to the large supermarket chain – now enrolling their staff into a workplace pension, we are creating a nation of responsible employers who are reassuring their workforce that with their support, they will have a secure retirement.”
“Clearly this would not have been possible without the hard work and continued support of employers across the UK.”
“That is why we are committed to working closely with them to prepare for our recently announced proposals which will ensure even more people, including 18 to 21 year olds, lower earners and multiple job holders, can benefit from a workplace pension in the future.”