Low pension scheme membership confirms the need for auto enrolment

One of the main reasons for the governments introduction of automatic enrolment was that while people are living longer, healthier lives they are saving less and less for retirement. Recent figures from the Office for National Statistics (ONS) confirm this reason, with current pension schemes having fewer members than any time since records began.

According to the ONS report, only 46% of workers in the UK had a pension scheme in 2012, down from 55% a decade ago. The total number of employees actively saving in a pension scheme in 2011 was 8.2m, which is lower than any year since 1956.

1967 saw the number of active members of pension scheme peak at 12.2m, dropping to 10m in 2000 and continuing to fall from then.

Auto enrolment, the key component of the government’s workplace pension reform, was introduced to encourage more workers to start planning for their retirement and has already been rolled out to some larger companies.

You can read the full pension report on the ONS website.

Experts are urging businesses to start preparing for auto enrolment at least 18 months before their staging date. Have you started thinking about what you need to do to prepare yet?

If you’re confused about auto enrolment and what to know what you need to do and by when, why not download our free auto enrolment guide and find out?

Download the guide.

Stephanie Coward

Managing Director, HCM

Stephanie Coward is Managing Director for HCM at IRIS, where she leads the strategy, innovation and growth of the organisation’s HR and payroll portfolio. She is responsible for positioning IRIS as a trusted partner to HR professionals and ensuring its solutions support the evolving needs of modern workforces.

With more than 25 years’ experience in the technology sector, Stephanie brings deep commercial and operational expertise, with a passion for improving the employee experience through technology.

Stephanie is committed to advancing IRIS’ HCM offering and helping organisations build more resilient, empowered workforces.