Justin Tomlinson MP Welcomes New Statistics Showing Significant Increase In Number Of People Saving For Retirement Through Workplace Pensions
Last Updated: 15 February 2019
Created: 14 February 2019
North Swindon MP and Work & Pensions Minister, Justin Tomlinson, has welcomed the news that a record number of people in Swindon are saving for retirement thanks to auto-enrolment in workplace pensions.
New figures show that 36,000 people in Swindon are now enrolled in a workplace pension.
The North Swindon MP has welcomed the statistics which show that, due to changes to workplace pensions, 10 million more people nationally are now saving for retirement.
Auto-enrolment was introduced so that workers can save more and have greater financial security and independence in their retirement.
The current criteria to qualify is simple. If a person is aged between 22 and State Pension age, earns more than £10,000 a year and works in the UK, a small percentage of their wage will be paid into a pension scheme, with extra money added on top by their employer. This is then used to build up a pension pot which can be used to pay an extra income on top of the State Pension when a person reaches the pension age.
The need for reform was highlighted by the worrying statistic that the percentage of people saving for retirement had fallen to just over half in 2010.
Since its launch in 2012, over 10 million people are now enrolled into a workplace pension, with a large number of new savers under the age of thirty. 4 in 5 of today’s eligible workers (83 per cent) now see saving through a workplace pension as the normal thing to do if you are in paid employment.
Workplace pension participation in the public and private sectors has increased from a low of 55 per cent in 2012 to 84 per cent in 2017. The most significant increases have been among the lowest earners, younger people (those aged 20 to 29) and women.
As a result of the success of auto-enrolment into workplace pensions among employees over the age of 22, Ministers have also announced that the scheme will now be extended to all employees over the age 18 – a move which it is hoped will foster a new generation of savers.
Justin Tomlinson MP said: ‘By introducing automatic enrolment, we’ve enabled 10 million more people – including 36,000 people in Swindon – to save for their future. Our balanced approach to the economy – as well as important changes to help people save more for their retirement – means more families can plan for the long-term with the security of a pension. For a whole generation, workplace pension saving is now the new normal, but there’s more to do to help more people than ever before build an enjoyable and secure retirement.’
Secretary of State for Work and Pensions, Amber Rudd, added: ‘Automatic enrolment is an extraordinary success story. Thanks to this revolutionary reform, 10 million more people can look forward to a more secure future and a better retirement. That is a remarkable achievement. Workplace pensions had fallen out of fashion and were seen as the preserve of older, wealthier people. Now saving is the norm across the UK, wherever you work. As we reflect on this milestone, we will of course be considering how we can reach even more people – with our ambition to bring in younger workers and enable everyone, particularly part-time and lower earners and the self-employed, to save more.’