Over 3 million workers have begun saving into a workplace pension scheme as a result of automatic enrolment, according to figures from The Pensions Regulator.
The 3 millionth worker is employed by West Ham United, whose Vice Chairman Karren Brady backed the roll out of the new workplace pension scheme.
The first workers were automatically enrolled into pension schemes in 2012 starting with the largest employers and the duties will extend to the smallest firms and new employers by 2018. The policy was introduced to address chronic under-saving with millions not putting aside enough for retirement, and only 1 in 3 private sector employees paying into a workplace pension.
This month’s automatic enrolment registration report shows that more than 10,000 employers of all types from charities to supermarkets, hospitals to football clubs have now automatically enrolled their workers.
Thousands of medium sized employers will follow them over the next 6 months.
Pensions Minister, Steve Webb, said:
Before automatic enrolment, pension saving in this country was at its lowest ebb with too few people having the opportunity to save into a workplace pension. We have restored fairness by ensuring pensions are no longer the preserve of the few.
We have kicked off a savings revolution that will benefit millions in their retirement.
Karren Brady, Vice Chairman of West Ham United FC Ltd, said:
West Ham United is pleased to be supporting the auto enrolment scheme. It is becoming increasingly important for people to plan for their future at an earlier age. The scheme should help to make a real difference to the retirement prospects of some of the unsung stars at our club.
Charles Counsell, Executive Director of automatic enrolment at The Pensions Regulator said:
Completing registration with us means joining the growing league of employers who have complied with their automatic enrolment duties and are helping their workers save for retirement.
Thousands of employers need to act now and get match fit for their automatic enrolment deadline in the coming months.
All employers must submit an online declaration of compliance by completing registration with The Pensions Regulator.
The regulator’s website has a tool for employers to check when they are due to stage and another that helps them plan ahead to avoid unnecessary complexity and cost.
West Ham United PLC was 1 of hundreds of employers to confirm they had completed automatic enrolment by completing registration with The Pensions Regulator in January.
All employers must supply registration information to the regulator after automatically enrolling their staff.
In 2014, tens of thousands of employers will reach their staging date. Eventually up to 1.3 million employers will have automatically enrolled up to 11 million eligible workers into a work-based pension scheme.
See the statistics on automatic enrolment on The Pensions Regulator website.
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