Participation in pensions increased in 2013 for the first time since 2006, according to research by the Office for National Statistics (ONS).
Its 2013 Annual survey of hours and earnings: summary of pension results, found that the proportion of employees who belong to a workplace pension increased from 47% to 50% in 2013, the largest rise since records began in 1997.
The research also found:
- 85% of public sector employees and 36% of private sector employees had a workplace pension scheme in 2013.
- In the private sector, 51% of employees at large employers (5,000-plus employees) were members of a workplace pension in 2013, compared to 36% in 2012.
- In the public sector, 75% of full-time employees earning between £100 and £200 per week were members of a workplace pension in 2013, compared to 59% in 2012.
- In 2013, 23% of employees with defined contribution (DC) pension schemes received employer contributions of greater than zero and less than 4% of pensionable earnings, compared to 11% in 2012.
- The proportion of employees with DC pension schemes receiving employer contributions of more than 12% stood at 20% in 2013, compared to 33% in 2012.
- 37% of employees aged between 22 and 29 were members of a workplace pension in 2013, compared to 31% in 2012, the largest increase for any age band.
Steve Webb (pictured), minister for pensions, said: “Our reforms to pensions are working. More people are saving and this shows that, even at an early stage, automatic-enrolment is having an extraordinary impact.
“[It] has gone from strength to strength and now more than three million people have been automatically enrolled.
“Ensuring people can plan for their retirement is paramount to a strong economy.”
