A report published by The Pensions Regulator (TPR) has revealed that there has been a significant increase in the number of young employees saving into a workplace pension thanks to the introduction of auto-enrolment.
Figures indicated that the number of employees asking to join a pension scheme has nearly doubled, from 16 per cent in 2012/13 to 30 per cent in 2017/1018.
Between the introduction of the reforms in 2012 and April 2018, the overall proportion of eligible staff saving into a workplace pension increased from 55 per cent to 87 per cent.
In 2018, the annual amount saved by eligible savers was £90.4 billion, an increase of £16.8 billion compared to 2012.
The largest increase in participation has been seen amongst eligible employees in the youngest age groups. In particular, the number of 22 to 29-year-olds in the private sector contributing to their pension has increased from 24 per cent in 2012 to 84 per cent in 2018.
Guy Opperman, Minister for Pensions and Financial Inclusion, said: “It’s great to see a whole new generation of workers in big and small businesses putting money away and planning for a more secure future. The progress we’ve made towards eliminating the gender gap in pension saving is hugely encouraging.
“Automatic-enrolment has transformed pension saving and boosted the retirement prospects of millions of people, and we’ll make sure that even more can benefit from workplace pensions.”