Since 2012, some 5.8 million workers have been automatically enrolled into a workplace pension by 78,000 employers. But this process began with larger businesses, and it is only now that smaller firms right down to employers with only one employee are beginning to enrol their staff. It is estimated that around 9 million workers will either be newly saving or saving more into a workplace pension by 2020 thanks to the changes.
Mr Pincher said, “Workplace pensions will help millions of people, and thousands across Tamworth, better prepare for their retirement. They will have a bigger savings pot and a better standard of life to lead, especially as more and more people are healthier for longer. Many people in our town are employed by small employers and now they too will be able to benefit from workplace pensions.”
Minister for Pensions Baroness Altmann said, “In the past three years well over five million people have successfully automatically enrolled into a workplace pension – but the hard work starts here.
“We have made great strides forward in establishing pension saving at work as the cultural norm once again, but we need this momentum to continue. Employers in all areas including Tamworth will be required to automatically their staff.
“Rolling out to small and micro employers brings with it new challenges, which is why we’re working hard to ensure they have the right level of support at every step of the way to help them through the process. It is absolutely right that as many people as possible have the chance to save for later life, with the help of their employer.”
Automatic Enrolment will fundamentally change the way society approaches saving into workplace pensions. Instead of opting in, as was generally the case in the past, people will be automatically enrolled by their employer provided they are earn over £10,000, are over the age of 22 and have not reached State Pension age.
The Pensions Regulator has responsibility for the day-to-day running of automatic enrolment and is there to help employers meet their legal obligations.
They have developed a simple interactive online guide with step-by-step instructions specifically for small employers including those who only employ one or two staff. The guide explains what these employers need to do, by when, how long it should take, and what’s coming next.