Workplace pension saving jumps as Brits embrace automatic enrolment

 
Oliver Gill
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Pension scheme memberships have increased by 12.6m people, TPR said (Source: Getty)

Have we finally got the message we won't be able to rely on the state pension in our old age?

Workplace pension saving swelled by more than a fifth over the last year, according to figures released today by the Pensions Regulator (TPR).

Some £5.4bn was squirrelled away during the last 12 months, an increase of 21 per cent year-on-year.

The saving is into defined contribution (DC) pension pots. These do not guarantee a fixed level of income in retirement (unlike defined benefit pensions) but are a tax-efficient way of putting money aside, investing it and hoping it will grow to an amount sufficient to fund retirement.

Read more: UK's biggest firms reveal deathly plan to cut pension black holes by £25bn

Pension scheme memberships have increased by 12.6m people, the TPR said, that's a 29 per cent rise over the year and a 400 per cent increase since 2010.

"The success of automatic enrolment has put DC schemes – and particularly master trusts - at the heart of pension saving in the UK, and our figures illustrate this trend," said TPR executive director Anthony Raymond.

"For these new and existing savers we have a role to protect their benefits and so we are working hard to drive up standards of trusteeship."

Read more: City experts: Don't treat £55bn pension tax relief regime as a "piggy bank"

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