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Eloise Henderson
Press office and Social Media Manager
T: 01293 205335
M: 07741 384460
E: eloisehenderson@bandce.co.uk

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Alana Stuart
Press Officer
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M: 07471 354733
E: alanastuart@bandce.co.uk


One in five employers (20%)1 plan to pay more than the minimum contribution required for auto-enrolment, following today’s increase, according to a new survey by The People’s Pension.

The survey of 120 employers2 also found that more than one in 10 (13%) businesses1 are planning to pay more than the minimum requirement following the further increases in 2019 and almost one in five (18%)1 employers are considering whether to pay above the minimum.

The findings also show that the vast majority of employers (77%) have actively engaged their staff regarding the increases3, with almost half of employers (47%) sending out letters to their employees, nearly a third (30%) updated in team or company meetings, almost a quarter (23%) emailing employees and one in five (19%) being informed directly by their line managers.

Commenting on the findings, Andy Tarrant, Head of Policy at The People’s Pension, the second largest master trust in the UK, said:

“Employers have had a vital role in making auto-enrolment a huge success and helping more than nine million people save towards their retirement.

“As auto-enrolment faces this pivotal moment, it’s encouraging to see that the majority of employers have informed their staff about the changes. Businesses, the pensions industry, and the government have a role to play in helping savers understand the long-term benefit that these increases will bring.

“These findings also show that as the minimum contribution levels increase, a growing number of employers are unsure whether to pay more than the minimum contribution. We know that the majority of employees highly value their employer pension contributions as an important benefit and consider them when looking for a new job. Increasing employer contributions above the minimum requirements, if employers can afford to, will not only help employees save for their retirement but can also benefit businesses when it comes to recruiting and retaining staff.”

ENDS

Notes to Editor

The People’s Pension is the largest private-sector master trust in the UK with almost 4 million members, around 75,000 employers signed up, and almost £4bn funds under management. Follow us @peoplespension

1.

 

AE phasing stages

Claimed level of employer AE contribution

Minimum 1% up to 5 April 2018

Minimum 2% from 6 April 2018

Minimum 3% from 6 April 2019

Pay the mininum contribution

73%

70%

68%

Pay more than the mininimum contribution

22%

20%

13%

Don’t know / prefer not to say

6%

10%

18%

2. 120 employers were surveyed as part of The People’s Pension customer satisfaction survey conducted by telephone between 26 February until 26 March 2018.

3. When asked, 77% of employers had done something (from the range of activities below) to inform staff about the April 2018 increase to the minimum auto-enrolment pension contributions.

47% – Sent out letters to their employees

37% – The information is included in the information the company gives about general pay and benefits

30% – Told employees in a team or company meeting

23% – Emailed employees

19% – Asked line managers to inform members of their team

14% – Included messages on their payslips

13% – Put up posters for employees to see

11% – Put information on the company intranet

3% – Employees were notified verbally in other ways

1% – Other

21% – None of the above

3% – Don’t know