New figures show
February 2018 is set to be a milestone moment, as the number of employers who have complied with their auto-enrolment duties passes the 1 million mark.
The Pension Regulator’s most recent compliance report, published in January 2017 showed that up to December 2017 the number of employers who had completed their Auto-enrolment compliance duties stood at 983,446, up from 938,179 the preceding month. Given the current numbers of employers engaged in the staging process, we expect this month’s announcement, due around the second week of February, to pass the 1 million mark.
Tom McPhail, Head of policy “Auto enrolment has been remarkably successful, so far. Everyone involved deserves credit, the politicians, the pension companies and the 1 million employers who have actually set up pensions for their employees and who are now helping them save for retirement.”
“There is however still more work to be done. We need to keep working on membership numbers, on contribution rates and on member engagement. In particular, the rules should be developed to give individuals the freedom to choose their own pension provider, rather than being forced to accept the scheme chosen for them by their employer. This would improve engagement, strengthen competition and cut down on the number of small pension pots. It would be possible to do this while keeping all the default auto-enrolment systems in place, so giving employees the best of both worlds; defaults for the disengaged and choice for those who want it.”