Workplace pension participation has rocketed to its highest level in a decade across the South East with young people and those in lower paid jobs among the biggest winners.
New figures have revealed that in 2014 69 per cent of eligible employees across the region paid into a workplace pension, an 11 per cent increase on the previous year.
Nationwide, 70 per cent of eligible employees -13.9 million people - paid into a workplace pension in 2014, a 15 percentage point increase in just two years.
Young people in the private sector in particular have seen a remarkable boost to their future retirement prospects, with more than half now saving. Fifty-four per cent of 22 to 29-year-olds made regular contributions in 2014 – more than double 2012’s figure of 24 per cent.
It is a further sign that the Automatic Enrolment pension reform is turning around the long-term decline in people who are saving for the future.
Minister for Pensions, Baroness Ros Altmann said:
“Pension saving across the South East has hit a 10-year high which is great news for the retirement prospects of workers across the area.
“Automatic Enrolment is key to a pensions’ revolution which is breathing new life into workplace pension saving, to help give people the security and independence to start planning for their future.”
The numbers of people participating are set to continue rising as Automatic Enrolment extends its reach to small and micro firms between now and 2018, by which time about 9 million workers will have been enrolled.
We are working hard to try to help more employers set up and contribute to pensions for their employees.
The Government will be increasing the minimum contributions that must be paid in to Automatic Enrolment to eight per cent in 2018, to help people further accumulate a bigger retirement pot.
Automatic Enrolment has completely changed the face of pension saving. Instead of individuals having to fill out forms to join a pension scheme, they are now enrolled automatically by their employer provided they are at least 22 years old and under state pension age, and earn more than £10,000 a year. If they don’t want to belong they now have to actively opt out.
Don’t miss out on all the latest breaking news where you live.
Here are four ways you can be sure you’ll be amongst the first to know what’s going on.
1) Make our website your homepage
2) Like our Facebook page
3) Follow us on Twitter
4) Register with us by clicking on ‘sign in’ (top right corner). You can then receive our daily newsletter AND add your point of view to stories that you read here.
And do share with your family and friends - so they don’t miss out!
Always the first with your local news.
Be part of it.