New pension system attract one million savers

New pension system attract one million savers
Published:  22 Jul at 9 AM
Since introducing new legislation at the end of last year, the government claims a million new savers have been automatically enrolled into workplace pension schemes. Ministers concerned about a pensions crisis introduced the scheme that workers have to opt out of if they do not wish to make pension contributions.

Workers that stay in will have their payments matched by employers and the government. Steve Webb, UK Pensions Minister, described the system as the biggest change to pensions in a century. It is hoped that after the scheme has been rolled out an additional 11 million workers will be saving adequately for their retirement.

Before the introduction of automatic enrollment, official figures showed that pension saving had slipped to record lows. In 2011/12 fewer than 35 per cent of men and women of working age were actively setting money aside for their retirement.

At the moment it is the biggest companies in Britain that are rolling the scheme out. Travis Perkins said it now has 9,000 of its 24,000 staff enrolled into the scheme. CEO Geoff Cooper said every member of staff was being encouraged to take advantage of the system and that he was pleased the firm had helped the government hit 1 million savers.

It is estimated that those choosing a workplace pension will boost their savings by around £600 per year.