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 are starting now, and the smaller businesses will follow in the years to 2018.

Pensions minister Steve Webb said: “Today is a real landmark in this quiet revolution, finally reversing decades of decline in pension saving. 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.