Gordon Marsden – 2014 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Gordon Marsden on 2014-04-01.

To ask the Secretary of State for Work and Pensions, what assessment he has made of trends in (a) take-up of workplace pensions and (b) anticipated retirement income from current workplace pension accounts.

Steve Webb

a)

Automatic enrolment is increasing the take-up of workplace pensions and will continue to do so as the reforms continue to be rolled out over the next few years. The latest figures from The Pensions Regulator show that over 3.2 million individuals have now been enrolled into a workplace pension as a result of the reforms.

In 2013, 50 per cent of all employees were a member of a pension scheme, rising from 47 per cent in 2012. This was the first increase in participation since 2006 and represented the largest rise since records began in 1997. In particular, for the largest private sector companies (those with more than 5000 employees), 51 per cent of employees were members of a workplace pension scheme, up from 36 per cent in 2012. These figures were collected in April 2013 when automatic enrolment had been running for just 6 months.

(b)

Without automatic enrolment, median private pension income was expected to fall from around £3,900 a year in 2020 to around £2,200 a year in 2050. However, with automatic enrolment the median private pension income is expected to be around £3,600 by 2050.