Pension membership sees biggest increase since records began
Auto enrolment was introduced to the UK over a year ago, and recent figures are pointing to its success as it is announced that 2013 saw the biggest increase in pension membership since records began.
The Office of National Statistics (ONS) recently released their 2013 Annual Survey of Hours and Earnings: Summary of Pension Results which showed the proportion of employees belonging to a workplace pension had increased to 50%. Not only is this the biggest increase since records began in 1997, it is also the first increase since 2006.
Other key points highlighted in the report included:
85% of public sector employees and 36% of private sector employees had a workplace pension scheme in 2013.
In the private sector, 51% of employees within large employers (5000+ employees) were members of a workplace pension in 2013 compared to 36% in 2012.
In the public sector, 75% of full time employees earning £100-200 per week were members of a workplace pension in 2013 compared to 59% in 2012.
In 2013, 23% of employees with defined contribution pension schemes received employer contributions of greater than zero and under 4% of pensionable earnings, compared to 11% in 2012. The proportion of employees with defined contribution schemes receiving employer contributions of over 12% was 20% in 2013 compared to 33% in 2012.
These figures follow another milestone for auto enrolment, with The Pensions Regulator recently announcing that there are now over three million workers saving into a workplace pension scheme as a result of auto enrolment.
Have you started preparing your business for auto enrolment yet? IRIS is helping businesses prepare with a full range of auto enrolment solutions. Visit the auto enrolment page today to see how IRIS can help you.