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.
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?