Auto enrolment: Over 2 million people are in, but 170,000 will miss out next year
More than 2 million workers have begun saving into a workplace pension scheme as a result of auto enrolment, according to figures released by The Pensions Regulator. Up to 170,000 people, including 120,000 women, could be excluded from automatic enrolment due to changes in the personal tax allowance.
Auto enrolment began in October 2012 and is rolling out from the largest to smallest employers across the coming months and years. The Pensions Regulator’s most recent figures show that over 3,500 employers have now begun complying with auto enrolment helping push the figure past the 2 million landmark.
Pensions Minister Steve Webb commented on the announcement, saying: “It is great news 2 million people are making a positive difference to their retirement prospects through automatic enrolment. The changes to workplace pensions will help millions more people to achieve many happy new years in the future.
Over 3,500 employers so far are helping us to create a fairer society by ensuring that pensions are no longer the preserve of the few. And the message to employers is: make sure you’re ready for the date your workforce joins those already in.”
The personal tax allowance is due to rise to £10,000 from April 2014 however, meaning that up to 170,000 people will miss out on auto enrolment. The level of earnings which employees are assessed on and which decides if they are eligible for auto enrolment matches the personal tax allowance so will also increase to £10,000 in April.
Auto enrolment is the biggest change to workplace pensions in decades. It is easy to get confused with so many different people talking about it. To help put the record straight, IRIS has published a guide which you can download for free which looks at the truth behind 11 myths surrounding auto enrolment.