Millions of people in the UK are not saving enough for retirement. Automatic enrolment aims to increase workplace pension saving in the UK and forms part of a wider set of pension reforms designed to enable individuals to save towards achieving the lifestyle they aspire to in retirement.
Automatic enrolment requires employers to enrol eligible workers into a qualifying workplace pension scheme and pay a contribution, in addition to a government contribution in the form of tax relief. Automatic enrolment is being staged in between October 2012 and February 2018 by employer size, starting with the largest employers.
Once fully implemented, automatic enrolment aims to increase the number of individuals newly saving or saving more in a workplace pension by around 8 million, within a range of 6 to 9 million, and increasing the amount that is being saved in workplace pensions by around £11 billion a year, within a range of £8 billion to £12 billion.
This report follows the baseline evaluation report (DWP, July 2012), brings together the latest evidence to show what has happened since automatic enrolment began and updates key indicators that will be used to monitor progress throughout implementation.
The department is using this report to understand the impact of automatic enrolment so far and to inform future improvements during the implementation period to ensure automatic enrolment is working as intended.