Workplace Pension Reforms

Millions of people are not saving enough to have the income they are likely to want in retirement. Life expectancy in the UK is increasing and, at the same time, people are saving less into pensions. We need to address these challenges.

The workplace pension reforms we are introducing from 2012 will help to address the issues that prevent people from saving into a pension.

Automatic enrolment timetable – latest news

Toolkit

We have created a toolkit to help people understand the workplace pension reforms.

Toolkit

Automatic enrolment

The Pensions Act 2008 laid the foundations for a fundamental reform of workplace pensions. From 2012, every employer is required to automatically enrol their workers into a qualifying pension scheme, if they are not already in one. Employers must also contribute to that pension.

Automatic enrolment will help address the issues that prevent people from saving into a pension scheme, such as;

pensions saving being complicated and confusing;
people simply not getting around to it;
a lack of suitable pension products being available for people on low to moderate incomes; and
lack of employer pension provision, particularly in smaller firms.

Review of automatic enrolment

In June 2010 the Government announced a review to look at how best to support the implementation of automatic enrolment into workplace pensions.

The review considered whether the current approach strikes the right balance between cost and benefits to individuals, employers and for the tax-payer, particularly in the light of current economic conditions.

Review of automatic enrolment

Automatic enrolment legislation

Following recommendations made in the review, the Government is putting in place the final legislative changes needed to support the introduction of the workplace pension reforms from 2012. This has included consulting widely over the proposed legislation.