Auto-enrolment – Good news for employees of smaller firms
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Auto-enrolment – Good news for employees of smaller firms
The Institute for Fiscal Studies (IFS)* has been reviewing the pensions landscape and drawn some interesting conclusions about how auto-enrolment has changed the number of people saving into a pension. The scheme has been hailed an “extraordinary success”, by Minister for Pensions and Financial Inclusion, Guy Opperman.
The IFS estimates that before the advent of auto-enrolment, the number of small business employees saving for retirement was fewer than one in six; that figure has subsequently increased to seven in ten. With over a quarter of UK private sector employees working for a small business, this increase in participation really shows how the scheme is improving the pension prospects for millions.
*IFS, Mar 2019
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