Enable’s IFA’s in Bishop’s Stortford know that auto-enrolment pensions have brought savers attention to pensions. Ten million more people are now saving into pensions with big rises in private sector staff, the young and ethnic minorities. Less than half of private-sector workers had a pension in 2012. Now more than 85% do. This is being hailed as a success by regulators and financial experts.
It has to be good news for savers that record amounts are going into pensions. According to the UK pensions regulator, British workers saved £90.4bn into their pension schemes in 2018, £7bn more than the year before. Behind this surge is auto-enrolment, set up by the government in 2012 to make sure everyone, whether they work for a supermarket or a corner shop, has a private pension to boost their state pension on retirement.
Critics had warned that forcing small employers such as hairdressing salons to offer a pension would create unnecessary red tape and bureaucracy. But the Pensions Regulator said that between 2016 and 2018 there was a surge in small and “micro” employers joining the scheme, with 1.5 million employers now fully enrolled. “Since 2012 there has been a significant increase of 8 million to 18.7 million eligible employees participating in a workplace pension (87%) in 2018, showing the positive impact of the workplace pension reforms to date.”
But there is one group that has been left in the cold by auto-enrolment say the regulators, the self-employed. They are not required to join the scheme, and their numbers have increased sharply in recent years. If you are one of the self-employed Enables’ IFA’s can help you look at how to set up your pension scheme. There are lots of options out there to create a pension plan or add to or boost an existing pension plan.