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Govt expects 600,000 to enrol in pensions by 2013

Steve Webb 480 LibDems DWP

The Government is expecting 600,000 people to enrol in workplace pensions by the end of the year as auto-enrolment kicks in.

Auto-enrolment is launching on 1 October for firms with more than 120,000 employees.

By May 2015, the Department of Work and Pensions estimates that auto-enrolment will see 4.3 million people enter work schemes.

Pensions minister Steve Webb says: “Few policies affect as many people and this will be a truly radical social change. All the international evidence shows people respond positively to automatic enrolment, and I am determined to make sure that pensions are no longer seen as the preserve of the few.”

Yesterday, Office for National Statistics data showed the number of individuals contributing to private sector pension schemes hit an all time low in 2011, dipping below 3 million for the first time.

The numbers were blamed on a sharp drop in the number of people contributing to private sector defined benefit schemes, which fell from 4.6 million in 2000 to just 1.9 million last year.

The DWP says 11 million people are not saving enough for their retirement, with pension saving falling across all age groups. This is steepest among those aged 22-29, where the percentage of people saving has fallen from 43 per cent in 1997 to 24 per cent today.

Pension saving for men is down from 59 per cent in 1997 to 44 per cent today, while women have dropped from 49 per cent to 39 per cent.


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. I have a couple of private pension funds as well as an occupational, so I’m lucky. But has anyone recently had to deal with the private providers – Zurich, Scottish Widows & Standard Life in my case? Their processes are stuck in the pre-internet phase, all communications need to be via letter / stamps / envelopes / lots of form filling etc and it takes a MINIMUM of a full week between their receiving my letter and my getting a reply back. Their internet offerings are rubbish and their processes seem skewed towards making it relatively easy to pay money into them by Direct Debit but comparitively more difficult / time consuming to get any money out. I started the process of consolidating my 3 small pension funds into one, on 25th July and today, I’m still no closer to knowing when it will all be sorted out. If there is to be encouragement to people to put money into pensions, these private companies really need to sort themselves out. I think they are part of the problem

  2. @ Ben j

    but that’s the point, they hope if they don’t make it easy to switch you might not do it.

    Not TcF compliant mind you

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