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The Actuary The magazine of the Institute & Faculty of Actuaries

More than seven million in a pension scheme as a result of auto-enrolment

There were 7,050,000 eligible jobholders automatically enrolled into a pension scheme in November according to figures by The Pensions Regulator (TPR) published today.

Auto-enrolment has 'made great strides' ©Shutterstock
Auto-enrolment has 'made great strides' ©Shutterstock

This marks an increase of 179,000 workers from the previous month, with a current total of 341,495 employers confirming they have met their duties to complete their declaration of compliance.

In addition, 2017 will see the largest number of employers begin their workplace pension duties, with more than one million having complied with the law by the end of the year.

The Pensions Minister, Richard Harrington said: "We have made great strides forward by automatically enrolling seven million people into a workplace pension.

“Now the challenge is to make sure that everyone can benefit from a financially secure retirement, including those working for the smallest employers.

"Next year more than 700,000 small employers will see their workplace pensions duties start and my message to them is clear: don’t be daunted, there is help and support out there.

Workers started being automatically enrolled into pension schemes in 2012 to address under-saving, with millions not putting enough aside for retirement, and only one in three private sector workers paying into a workplace pension.

The latest figures signify an almost threefold increase from the 2,557,000 who enrolled in November 2013, however around two thirds of employers are still yet to act.

TPR executive director of automatic enrolment, Charles Counsell, said: “Over the next year the numbers of employers needing to act will rise again sharply.

“We have already written to them about what they have to do, and we encourage them to look out for letters from TPR and not to leave their preparations until too late."

The government announced yesterday that a 2017 review into auto-enrolment would consider how to include employees that are missing out on the benefits of the initiative.

Aegon head of pensions, Kate Smith, said: “Automatic enrolment has been a success, but to keep it that way it needs to keep pace with changes in employment trends, encouraging as many people as possible to save sufficiently.

“The government’s 2017 review will look to plug the gaps bringing more people into pension saving.”