One million UK employers have enrolled staff into a workplace pension, meaning more than nine million employees have now been automatically enrolled since the government policy was rolled out in 2012.
The latest figures from The Pensions Regulator show that more than 600,000 employers have complied with their duties in the past year alone.
The deadline is approaching for the remaining 150,000 employers, including new businesses set up since the scheme was launched, to enrol their staff by June this year.
Minister for pensions and financial inclusion Guy Opperman (pictured) said: “With one million employers – from the small sandwich shop owner to the large supermarket change – now enrolling their staff into a workplace pension, we are creating a nation of responsible employers who are reassuring their workforce that with their support, they will have a secure retirement.”
Currently, to be automatically enrolled into a workplace pension, a person must be aged between 22 and state pension age, and earn at least £10,000 per year. In return for employees contributing a minimum of 1% of their pay, employers will at least match it.
In April, minimum contribution rates are set to rise to 5%, and then again to 8% in April 2019.
‘Now the real work starts’
Former pensions minister and Royal London director of policy Steve Webb said reaching one million employers was “a huge milestone”.
“Getting more than nine million workers started on the journey of pension saving is a crucial first step, and a pause for celebration is in order,” said Webb. “But now the real work starts. The step up in contributions has to be handled well and we urgently need a plan to get people beyond the 8% minimum contribution planned under existing legislation.
“Getting so many people started with pensions is a tremendous achievement, but they risk being disappointed with the outcome if we do not get those savings levels up to more realistic levels as quickly as possible.”
The post Auto-enrolment hits ‘huge milestone’ of 1 million employers appeared first on Retirement Planner.