More young people saving into pensions due to automatic enrolment
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).
The report showed that the overall proportion of eligible employees saving into a workplace pension increased from 55% to 87% in the six years up to April 2018.
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.
Commenting on the report, Darren Ryder, Director of Automatic Enrolment at TPR, said: ‘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.