Auto enrolment membership passes one million mark after just one year
Less than one year since automatic enrolment was introduced the number of employees opting in to the new system has reached one million.
Auto enrolment, the main component of the government’s workplace pension reform, was introduced to larger companies in October last year and will be rolled out to other businesses across the UK in stages over the coming months and years.
The changes are being introduced due to encourage people to save and plan more for retirement, as people are living longer but saving less. Under the new legislation, eligible employees will be automatically enrolled onto a workplace pension. Employees will then have the option to opt out if they do not wish to contribute.
Pensions Minister Steve Webb commented on the figure saying “Today is a real landmark in this quiet revolution, finally reversing decades of decline in pensions saving. This is the biggest change to the pensions system for a century.
The money workers save is being matched by contributions from their employers and topped-up by tax relief, helping them put money aside for their retirement, many for the first time.”
Experts are urging businesses to start preparing for auto enrolment at least 18 months before your staging date. Have you started thinking about what steps you need to take yet? If not, why not book onto one of our auto enrolment training seminars?