Automatic Enrolment has helped millions put more into their
pension pots than ever before, according to new figures released
to mark 10 years since the policy was introduced.
In 2021, employees across the UK saved £114.6 billion into their
pensions. This is a real terms increase of £32.9 billion compared
to 2012, when Automatic Enrolment was introduced.
The figures reveal how the policy has transformed pensions saving
over the last ten years for people from Sterling to Southend, by
normalising workplace pension saving, establishing a culture of
retirement saving for a new generation, and helping foster a
greater sense of security in later life.
More than 10.7 million employees were paying into a
workplace pension in 2021, with the proportion of women saving
into a workplace pension, be it public or private sector, jumping
by about 50% since 2012. And young people too have benefitted,
with those aged 22 to 29 saving into a workplace pension more
than doubling in the same time period.
Minister for Pensions, , said:
Automatic Enrolment has completely transformed how people save –
with staggering results. In the ten years since its introduction,
10.7 million people have started saving for their pensions with
this easy to use scheme. We have also seen a huge and much needed
increase in women and young people being enrolled into a pension.
Automatic Enrolment is doing its job – helping more people save
more so they can do more in retirement.
Retail Entrepreneur and Dragons’ Den investor Theo Paphitis said:
In the ten-years since I was involved in the launch of Automatic
Enrolment, pension saving in the UK has gone from strength to
strength with more than two million workplaces signed up – this
is something to celebrate.
It is right that employees are given the chance and encouragement
to save and I am proud for my businesses to be involved. The
evidence is there that people are indeed saving more and
benefitting immensely.
Nest’s CEO, Helen Dean, CBE, said:
Over the past 10 years, Automatic Enrolment has completely
changed the UK’s saving landscape, bringing millions of new
people into pensions saving, many for the first time. It’s taken
a lot of hard work and dedication, from the people who develop
the policy, to schemes across the pensions industry, and
employers up and down the country.
It’s been a privilege for Nest to be part of this retirement
revolution and we look forward to the innovations we will achieve
together over the next 10 years
The anniversary was marked by a celebratory event, attended by
those who have made Automatic Enrolment a success including
businesses, employers, pension providers and regulatory bodies.
Following the success of the Automatic Enrolment, the government
intends to continue its work with thousands of employers and
pension providers to further boost the amount of people in a
workplace pension.
It will also continue its work on empowering savers to know their
pension options by introducing revolutionary products such as
Pensions Dashboards and Mid Life MOT’s, providing accessibility
and innovation in how people save for their retirement.
And now that a record number of people are saving for retirement,
the government is exploring how Automatic Enrolment can go even
further to help more people save more, sooner – by abolishing the
Lower Earnings Limit for contributions and reducing the eligible
age to 18.
