The introduction of automatic enrolment was expected to lead to around eight million workers saving more for their retirement.
The latest declaration of compliance report by The Pensions Regulator (TPR) reveals that estimate has already been reached – with hundreds of thousands more employers still to enrol staff over the coming months.
Minister for Pensions and Financial Inclusion Guy Opperman said: “Reaching this eight million figure is a formidable achievement and represents a huge number of people on the path to a more financially secure retirement.
“But we cannot be complacent and as contribution rates rise we know there is more to be done. That’s why our automatic enrolment review, which will report back later this year, is so vital to the future of this life-changing policy.”
TPR’s declaration of compliance report reveals that at the end of June, 8,165,000 workers were saving for their retirement in a workplace pension as a direct result of automatic enrolment.
During June 2017 alone, 168,000 people gained workplace pensions because of automatic enrolment – the equivalent of almost one every 15 seconds. This came as 44,328 more UK employers declared that they had completed their workplace pension responsibilities, bringing the total number of employers who have done so to 642,454.
Employers continue to have ongoing duties after they have declared their compliance with the automatic enrolment rules. Last week, TPR published research that showed most employers find meeting their ongoing duties easier than they had expected. Most micro employers interviewed said they spent only half an hour a month completing their duties.
Darren Ryder, TPR's Director of Automatic Enrolment, said: “Tens of thousands more people every week are signing up to a new workplace pension through automatic enrolment. Employers are continuing to become compliant and to remain so, allowing their staff to get the pensions they are entitled to.
“There are more than 500,000 more employers whose duties are still to begin over the coming months. I would urge each and every one of them to check today that they know what they need to do and when they need to do it so they can seek our help if they need it.”
All employers have legal duties and can use the Duties Checker on TPR’s website to quickly understand exactly what they must do.
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