Joanne Segars, NAPF Chief Executive, said: “This is a game-changer that will get millions of people saving for their retirement. The UK is drifting towards an iceberg when it comes to paying for its old age, and we need radical reform like this. Things have got to change. Less than half the workforce is saving into a pension and, without auto-enrolment, millions would end up scraping by on the state pension alone. Putting everyone into a workplace pension will help reverse years of decline in retirement saving. Crucially, this reform will reach those who have no pension – the young, the low-paid, and those working for small businesses.”
“Some people might think about quitting their new pension, but we urge them to stick with it and get saving for their old age. Leaving the pension would mean losing tax breaks and employer contributions which are, in effect, ‘free money’. “It’s important that people are put into well-managed, high-quality pensions that offer good value for money. We have to bolster faith in the system, and there’s no point bringing workers into a bad pension which they then turn their backs on.”
Starting today, there are new duties on employers to put their staff into a workplace pension scheme. This process is called automatic enrolment and is being rolled out gradually across UK employers.
Press release
© NAPF - National Association of Pension Funds
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