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Workplace Pension Saving Up By £2.5 Billion

Auto-enrolment increased workplace pension saving by £2.5 billion per year by April 2015, according to the Institute of Fiscal Studies (IFS).

The report found that pension participation among those eligible increased by 37 percentage points between April 2011 and April 2015. 

88% of these private sector employees were contributing into a workplace pension scheme.

By April 2015, 10 million employees were members of a workplace pension scheme.

Further findings:

  • pension coverage was boosted among those aged 22-29, earning £10,000 – £17,000 per year and those who have been with their employer for less than a year
  • most of those enrolled into workplace pensions have low levels of contributions
  • however, the number of employees contributing 5% or more of their total earnings has risen.

Jonathan Cribb, senior research economist at IFS, said:

“The story of automatic enrolment is certainly a case of so far so good. A key issue is whether those brought into workplace pensions at low contribution rates will remain in when minimum contribution rates start rising.”

For any help or advice with financial planning talk to RPD

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