You are here: Home - Retirement -

Pensions minister: auto-enrolment has been a quiet revolution

0
Written by:
01/10/2013
Pensions minister Steve Webb has hailed pension automatic enrolment "a quiet revolution" and "huge success."

Speaking to Your Money’s sister title, IFAonline.co.uk, to mark one year since the first employees were automatically enrolled into a workplace pension, Webb said the dearth of consumer complaints was one yardstick to measure the scheme’s success.

“What we have done is taken money out of over one million peoples’ pay-packets, essentially without their permission, and overwhelmingly they’ve said thank you,” he said.

“The emotion people experience is relief. People knew it was something they had to do but it was complicated and difficult and they didn’t know how to do it. Now it has been done for them and as a bonus the government and employers are putting money in.”

Some 1.6 million workers have joined workplace pensions in the last year, according to the Department for Work and Pensions.

Webb (pictured) said early signs on opt out were “encouraging”.

Less than 10% of employees automatically enrolled into a pension scheme have so far elected to opt out, according to official figures.

The government had previously forecast that up to a third of workers would opt out.

Auto-enrolment is being staged in over a period of six years, which started with the largest employers in 2012.

Thousands more employers will meet their staging date between now and May 2014.

Meanwhile, a report by NEST and research house the Futures Company said low auto-enrolment opt out rates are one of the most significant examples of how the recession has changed Brits’ money habits.

61% of those surveyed who have yet to be enrolled in a workplace pension scheme said they will definitely or probably opt in, up from just 47% in 2011.

Tim Jones NEST CEO, said: “Many households are still feeling the pinch and people are worried about the future, but they clearly think tomorrow is worth saving for and automatic enrolment seems to be a welcome helping hand.

“Although it can be a struggle to find a few extra pounds each month, the money from employer contributions and relief at finally doing something has convinced more people to stick with saving than we ever expected in this economic climate.”

 

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

The mistake that could see your broadband bill soar by 89%

UK households are paying hundreds of pounds more than necessary a year for being loyal to their broadband supp...
The mistake that could see your broadband bill soar by 89%

29 savings accounts beat inflation, but most people won’t switch

A total of 29 accounts now match or beat inflation, but the majority of savers will stick with a poor paying d...
29 savings accounts beat inflation, but most people won’t switch

HSBC to pull £200 current account switch deal

HSBC has announced it will axe its range of current account switch incentives in the next few weeks so if you...
HSBC to pull £200 current account switch deal

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Buy-to-let landlords could be forced to offer longer tenancies

Government plans to be announced later today could see buy-to-let landlords being forced to offer long-term tenancies.

Close