Justin Tomlinson MP Welcomes Major Increase In People Saving For Retirement Through Workplace Pensions

North Swindon MP and former Work & Pensions Minister, Justin Tomlinson, has welcomed the news that a record number of people in Swindon are saving for retirement thanks to auto-enrolment in workplace pensions.

As part of the commitment to deliver a sustainable pension system which helps employees save for their retirement, the Conservative government introduced auto-enrolment workplace pensions in 2012 alongside other changes to pension system.

The current criteria to qualify is simple. If a person is aged between 22 and State Pension age, earns more than £10,000 a year and works in the UK, a small percentage of their wage will be paid into a pension scheme, with extra money added on top by their employer. This is then used to build up a pension pot which can be used to pay an extra income on top of the State Pension when a person reaches the pension age.

The need for reform was highlighted by the worrying statistic that the percentage of people saving for retirement had fallen to just over half in 2010.

Since its launch in 2012, 9.3 million people have enrolled in a workplace pension, and a large number of the new savers are under the age of 30. The increase in people saving means that percentage of people saving for retirement is now at an all-time high of almost 80%. The reforms have been assisted by the one million employers who have registered staff in a scheme.

In Swindon, more than 35,000 more people have a workplace pension following the introduction of auto-enrolment – delivering a sustainable, long-term way to save for their family’s future.

As a result of the success of auto-enrolment into workplace pensions among employees over the age of 22, Ministers have announced that the scheme will now be extended to all employees over the age 18 – a move which it is hoped will foster a new generation of savers.

Justin Tomlinson MP said: “I am delighted that over 35,000 more people in Swindon are benefitting from a small change which will make a huge difference. By bringing in auto-enrolment to workplace pensions, employers are helping their employees save for their retirement in a sustainable way. When we came to power in 2010, the number of people saving for retirement had plummeted to a worrying level but this reform has seen people saving in record numbers and extending it to cover 18 to 21 year olds is another important step in fostering a generation of savers.”

Minister for Pensions & Financial Inclusion, Guy Opperman MP, said: "With one million employers - from the small sandwich shop owner to the large supermarket chain - now enrolling their staff into a workplace pension, we are creating a nation of responsible employers who are reassuring their workforce that with their support, they will have a secure retirement."