Commenting on The Department for Work & Pensions (DWP) official statistics on workplace pension participation, Morten Nilsson CEO, NOW: Pensions said: “Auto enrolment is working in reversing the persistent decline in workplace pension saving. But, these headline statistics can mask an uncomfortable truth.
While 6.9 million people have been auto enrolled, research from the Pensions Policy Institute shows that around 6 million have been excluded. Of these, 3.3 million have been disbarred as they don’t earn £10,000 per annum – the trigger for inclusion in auto enrolment and, over three quarters of employees earning less than the auto enrolment trigger are women.
Auto enrolment is a policy that needs to work for everybody but at the moment it is failing to deliver for millions of the lowest paid workers.
“The 2017 auto enrolment review is an opportunity for the Pensions Minister to tackle some of these inadequacies and talk openly about where the policy is succeeding and failing.”
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Notes to editors
NOW: Pensions www.nowpensions.com @nowpensions
NOW: Pensions is one of the UK’s largest workplace pension providers with over a million members and tens of thousands of employers from a wide range of sectors. A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, NOW: Pensions entered the UK market in 2011 with a simple and cost effective workplace pension designed specifically with the auto enrolment market in mind.
NOW: Pensions was one of the first providers to achieve independent assurance of scheme quality in accordance with the master trust assurance framework (AAF02/07) introduced by The Pensions Regulator in conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW).