The Pensions Regulator has confirmed that the millionth worker has been enrolled into a workplace pension as a result of the government’s automatic enrolment scheme.

Automatic enrolment was introduced in October last year to ensure workers have access to an occupational pension. The largest firms in the UK have already started enrolling their workers into pension saving, medium-sized firms and the smaller businesses will follow in the years to 2018.

Minister for Pensions Steve Webb said, “This is the biggest change to the pensions system for a century. The money workers save is being matched by contributions from their employers and topped-up by tax relief, helping them put money aside for their retirement, many for the first time.”

By this time next year, thousands of employers will be automatically enrolling their staff, and by 2018 every employer in the country will have helped their staff start saving for later life. Research shows that over 90% of people who have been placed into a workplace pension by their employer are staying in.

Department for Work and Pensions (DWP) research published in August gives the first official indication of how well the government’s landmark automatic enrolment scheme, to get people saving for their retirement, is being received.

The qualitative research of the 50 biggest employers shows that on average just 9% of people have opted out. Previously, DWP research with workers across all business sizes found that 30% were likely to opt out. The findings also suggest that young people are leading the way in the savings revolution, with more under 30s staying in a pension scheme than other age groups.

Steve Webb continued, “Seeing our largest employers report such low opt out rates bodes well for this ambitious programme, which will see millions more putting money aside for the future. Too few people have been saving for retirement. It is all too often something to be put off, something for tomorrow. These figures show that people really value the chance to save into a workplace pension as they know they will also get money from their employer and the taxman too. The sooner people start a pension the better, and this report shows that young people are keen to take charge and plan for their future.”

For more information about auto enrolment and your obligations as an employer visit www.dwp.gov.uk

Photo:  Steve Webb