Help Centre for Payroll bureaux

Why do we need auto enrolment?

The government estimates that around seven million people are not saving nearly enough for retirement, with many people not saving at all!

With life expectancy increasing, people will live longer in retirement and therefore the size of their pension fund needs to be larger to sustain this.

The maximum basic State Pension for individuals retiring in the 2016/17 tax year is just £155.65* per week, the actual amount depends an individual’s NI contributions and normally at least 10 ‘qualifying years’ National Insurance are needed to get any State Pension at all. For most people without additional retirement savings, this may not be sufficient to make ends meet. It should also be considered that the government may not be able to afford to keep State Pensions at their current level in the long term.

Therefore, auto enrolment has been created in everyone’s best interest to preserve our financial future.

* From 06/04/2016 the maximum payable to all people already in receipt of the existing state pension rises from £115.95 to £119.30 per week. All people reaching state pension age after 06/04/2016 are subject to the new flat rate state pension regime and the maximum payable is £155.65 per week.
ATP comes to the UK pensions world with the highest commendations from the Danish trade unions, employers and government. NOW: Pensions' offering in the UK will be high quality, low cost, and honest and I'm proud to be associated with it. — John Monks, member of House of Lords and former General Secretary of ETUC and TUC
I'm excited by the opportunity to help bring to the UK auto-enrolment market NOW: Pensions, a customer-friendly and responsive trust-based alternative to NEST and to contract-based offerings. — Chris Daykin, the former Government Actuary
There is a need for a member-centric solution designed for ease of use with low costs and cutting edge investment strategy, which delivers long term stable returns. ATP's in-house investment capabilities, combined with our novel and innovative… — Lars Rohde, Governor of the National Bank of Denmark and Former CEO of ATP Group
I am backing NOW: Pensions, the ATP project, because I believe it will encourage transparency, low costs and decent returns for millions of British employees. — Nigel Waterson, former Shadow Pensions Minister
Why do we insist on having a choice of fund manager when the evidence shows there is usually no benefit to be gained…and there is always a negative impact in terms of cost? — Anthony Hilton financial editor of the Evening Standard writing in Pensions World, June 2013