Alistair Burt has welcomed new figures showing that, due to changes to workplace pensions, over 10 million more people are now saving for retirement. In NE Bedfordshire, 10,000 people are now enrolled in a workplace pension.
Auto-enrolment was introduced so that workers can save more and have greater financial security and independence in their retirement. Any UK resident aged over 22 and earning more than £10,000 must be enrolled onto a workplace pension by their employer.
Contributions are paid by the employer (at least 3% of pensionable salary), with another 4% coming from employees and 1% from the Government in tax relief. These total contributions of 8% have increased from April 2019.
“Automatic Enrolment is a big change – it has reversed the decline in workplace pension saving and I am delighted that these latest figures show that more than 10 million workers have been enrolled.
I particularly welcome the increasing number of women and lower earners saving into a workplace pension. Looking forward, the Government will be considering extending it further to younger workers, those in part-time jobs and the self-employed, ensuring that saving for retirement becomes the norm”.