Thousands of Pendle folk better off due to workplace pensions
MP Andrew Stephenson has welcomed new figures that show 9,000 in Pendle have been automatically enrolled into a workplace pension – delivering on the Conservative Government’s priority to build a more inclusive savings culture.
Overall, participation in workplace pensions has risen from 42% in 2012 to 86% in 2020 – thanks to work that has been carried out by successive Conservative governments.
Prior to the introduction of Automatic Enrolment in 2012, the number of employees participating in workplace pensions was 10.7 million, representing just 55% of those eligible. By 2020, 19.4 million employees were participating in a workplace pension, representing 88% of those eligible – an increase of 33%.
Employers have also played a major role in supporting Automatic Enrolment, increasing their contributions in 2019 to ensure savers put away contributions worth 8% of their pay.
These figures mean that total annual savings for eligible savers increased to £105.9 billion in 2020, a real-terms increase of 37% compared to 2012.
Mr Stephenson said: “Strong financial security later in life is vital and we should do everything we can to help working-age people plan for this.
“Automatic Enrolment has been transformative for young people and women – creating a stronger savings culture for future generations – and for thousands of local businesses.
“That is why I am delighted that 10 years after its launch, the Automatic Enrolment scheme has already helped 9,000 workers in Pendle save for their futures. Getting more people enrolled into pension schemes helps them take control of their future finances, and I am pleased that there are plans to go further by removing the lower earning limit.”