Don't waste time
Empower your teams with integrated Time and Attendance, HR and Payroll solutions
Pension saving in the UK has increased significantly since the introduction of the auto-enrolment initiative.
Figures from the Institute for Fiscal Studies (IFS) show pension savings have risen by £2.5 billion a year, as well as boasting the number of workers enrolled in the schemes.
The IFS data showed there has been a 37 per cent increase in pension participation among eligible employees, with 88 per cent of private sector workers members of a workplace pension scheme.
Between 2012 and 2015, an extra 4.6 million private sector employees joined a workplace pension, with IFS estimating 4.4 million did so as a result of auto-enrolment.
Jonathan Cribb, senior research economist and report author at the IFS, said: “Automatic enrolment has been very successful in boosting membership of workplace pensions. This has been particularly true of younger employees aged 22 to 29 and relatively low earners on between £10,000 and £16,000 a year.
“Significant numbers of those not targeted by the policy have also been brought into workplace pensions, such as those earning less than £10,000. The story of automatic enrolment is certainly a case of so far so good. A key issue is whether those brought into workplace pensions at low contribution rates will remain in when minimum contribution rates start rising.”
Mitrefinch can help companies ensure they process payroll and salary deductions efficiently and without any problems.