10 million employees have joined a workplace pension | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 15/11/2019

An official report by the pension regulator revealed that 10 million employees had joined a workplace pension scheme by March this year.

According to the report, by March 2013 just 1 million employees were signed up to a workplace pension scheme, however this had increased to 10 million by March 2019, an increase of nine million in just six years. The report also revealed that in 2019, 85% of eligible employees have joined a workplace pension scheme, a sharp increase from 42% in 2012. In addition to this, during 2018, it is estimated that £90.4 billion was saved into the workplace pension scheme, an increase of £16.8 billion from 2012.

What is a workplace pension scheme?

Workplace pension schemes are a work-based pension in which employees save a percentage of their wage automatically into a pension each month, with the employer also contributing a percentage into the pension at the same time. Eligible employees are automatically enrolled into the scheme, however they can opt-out if they choose. The auto-enrolment programme began in October 2012 and was gradually rolled out to all workplaces and is now a legal duty for all employers. Currently, as part of the scheme, a minimum of 8% of the employee’s qualifying earnings must be saved into a pension, of which at least 3% must be paid by the employer. To find out more about workplace pension schemes, read our guide Auto-enrolment and your workplace pension.

Are you eligible to join a workplace pension scheme?

Employees who are aged between 22 and state pension age and earning over £10,000 from one job will be automatically enrolled into a workplace pension. Employees are earning less than £10,000 but over £6,136 will not be automatically enrolled, but can ask to join their employer’s workplace pension scheme, the employer cannot refuse and must also contribute to the pension. Those earning less than £6,136 cannot join a workplace pension scheme.

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