More than eight in 10 employees in the UK are now saving into a workplace pension, new figures reveal.
The Pensions Regulator (TPR), which published the report, said the vast majority of staff are now saving for retirement “thanks to automatic enrolment”.
The research shows that 84 per cent of employees are contributing to a workplace pension each month, compared with 77 per cent the previous year.
The finding forms part of TPR’s new annual commentary and analysis report, which looks at the impact of automatic enrolment and upcoming trends and challenges.
Automatic enrolment is a Government initiative designed to help workers save for retirement. It makes it compulsory for employers to enrol workers into a workplace pension scheme, providing they meet the required income and age threshold. Failure to do so can result in penalties and sanctions against an employer.
To date, TPR says compliance with the law remains high among employers, despite several high-profile prosecutions earlier this year.
It was revealed in February that an Oldham coach firm was to be the first to fall foul of the new rules, receiving a fine of around £39,000.
Commenting on the report, TPR’s Director of Automatic Enrolment, Darren Ryder, said: “Today’s report again demonstrates how far we’ve come in making workplace saving the social norm thanks to the success of automatic enrolment.
“Employers nationwide have successfully complied with the law to give their staff the opportunity to start saving for their retirement, often for the first time.
“Our role now is to ensure current and new employers continue to meet their duties, including re-enrolment and next year’s further increase to minimum contributions, so that the culture of saving remains strong. We will continue to act if employers fail to comply.”