More than eight million employees have signed up for a workplace pension since the launch of automatic enrolment, according to figures from The Pensions Regulator (TPR).
This means the Department of Work and Pensions hopes for an increase in the number of individuals newly saving or saving more in a workplace pension “by around eight million, within a range of six to nine million” is being met.
There are also hundreds of thousands more employers still to enrol staff.
TPR’s declaration of compliance report reveals that at the end of 8 June,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 and 44,328 more UK employers declared they had completed their workplace pension responsibilities, bringing the total number of employers who have done so to 642,454.
Guy Opperman, minister for pensions and financial inclusion 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.”
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.”
David Gauke, who took over as works and pensions secretary in June as part of prime minister Theresa May's cabinet reshuffle, has confirmed his support for auto-enrolment, which should bode well for any review recommendations.
Kay Ingram, director of public policy at financial planners LEBC said: “Auto enrolment has been successful at getting employees to start saving for retirement. The next challenge is to achieve a greater degree of engagement and understanding of the levels of funding and investment risk that needs to be taken for a successful retirement.
“We are urging product providers to facilitate the Pensions Advice Allowance and Mr Gauke to follow through with the increase in employer sponsored advice allowance from £150 a year to £500 a year. These two measures will facilitate workplace based advice and greater engagement.”
