Fall in Workplace Pensions

Figures from the Department for Work and Pensions have revealed that only a quarter of private sector workers are active members of their employers’ pension schemes – down by a third compared to figures from 2007.

The latest Employers’ Pension Provision survey carried out by the Department for Work and Pensions, along with showing that only a quarter of private sector workers are active members of their employers’ pension schemes, also reveal that only three in ten private sector businesses offer their staff any pension provision – another fall from five years ago, when the figures stood at four in ten.

In addition to a fall in the number of businesses within the private sector offering any form of pension provisions, the survey has also found that twenty-six percent of private sector employees are either active members of a work-place pension scheme or have arrangements whereby the employer makes a contribution to a private pension.

With auto-enrolment only a few weeks away, the figures reveal the need for more to be done by both employers and employees in regard to pensions and planning for retirement; sentiments echoed by one of the authors behind the survey, who said: “This report clearly demonstrates the need for the auto-enrolment reforms, but it also demonstrates the scale of the challenge ahead.

“Many of the very largest employers are ready. But there is still a great deal to be done to spread awareness and build understanding among small employers.”