Auto-enrolment hits four million milestone

MORE THAN four million employees have now been automatically enrolled in a workplace pension, according to The Pensions Regulator (TPR).

Some 21,000 employers have completed their declaration of compliance since the government initiative was launched in 2012, figures from the watchdog showed, Financial Director‘s sister title Professional Pensions reports.

Pensions minister Steve Webb said: “This latest milestone figure shows how saving in a workplace pension is now becoming the norm.

“Four million people have now been automatically enrolled into a workplace pension with many more saving for their retirement for the first time or saving more as a result.”

Colleges, care providers, hairdressers, hi-tech factories, a seaside hotel, a scrapyard and a designer were among the variety of employers who staged in August.

TPR executive director of auto-enrolment Charles Counsell (pictured) said: “It is a mix which illustrates just how automatic enrolment is gradually becoming part of the fabric of running every type of workplace.”

The regulator has been sending out letters to small employers to ensure they are aware of their upcoming staging dates, he added.

Previous data from TPR revealed it investigated 785 cases of potential non-compliance between April 2013 and March 2014.

Last month, a report from the Pensions Policy Institute (PPI) said the value of assets in defined contribution (DC) schemes would outstrip those in defined benefit (DB) by 2036 if AE is a success.