Automatic enrolment is business as usual with vast majority of staff now saving
26 September 2018
The Pensions Regulator has published the annual commentary and analysis report for April 2017 – March 2018, which looks at the impact of automatic enrolment and upcoming trends and challenges.
The report shows that the vast majority of staff across the UK are now saving for their retirement. Workplace saving is continuing to rise with 84% of employees now saving into a workplace pension with £90.3 billion now saved into a pension by staff.
TPR’s Director of Automatic Enrolment, Darren Ryder, said:
“This report again demonstrates how far we’ve come in making workplace saving the norm thanks to the success of automatic enrolment.
Our role now is to ensure current and new employers continue to meet their duties, including re-enrolment and next year’s further increase to minimum contributions, so that the culture of saving remains strong. We will continue to act if employers fail to comply.”
Other highlights from the report include:
- Although the number of compliance notices issued to employers has risen from nearly 34,000 last year to nearly 70,000, the majority of employers comply when they are reminded of their duties.
- We’re monitoring employers to ensure they’re complying with the new increased contribution rates which started in April 2018. Our initial analysis shows very high compliance.
- The majority of employers spend less than two hours a month on their ongoing duties and find them easier than they expected.
- For the minority of employers who rely on outside help, the cost of external advisers for employers with between 1 and 4 staff has fallen from £42, in the previous survey, to £18.