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Auto-enrolment: Helping more young people save

The number of young people saving into a workplace pension is increasing due to auto-enrolment, according to a report by The Pensions Regulator (TPR).

Shown in the report, the overall proportion of eligible employees saving into a workplace pension has increased. In the six years up to April 2018, there has been an increase from 55% to 87%.

According to the report, the biggest growth in participation was amongst eligible employees in the youngest age groups. In the private sector, the largest increase was amongst 22 to 29-year-olds. Where participation was up from 24% in 2012 to 84% in 2018.

Furthermore, Darren Ryder, Director of Auto-Enrolment at TPR has commented on the report. Saying: ‘It’s terrific that the chance to save has been opened up to millions more people. Who may not have otherwise set up a pension. In years to come, young people in their twenties who started saving today will reap the reward of a retirement they can look forward to.

‘When taking on a job, people now expect a pension. Even more encouraging is that there has been a rise in the number of people who, although are not eligible to be automatically enrolled, are asking to join a scheme. This signifies a huge cultural shift.’

The annual amount saved by eligible individuals was £90.4 billion in 2018. An increase of £16.8 billion on the total amount saved in 2012, when the reforms were introduced.

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