Automatic Enrolment has helped millions put more into their pension pots than ever before, according to new figures released to mark 10 years since the policy was introduced.
In 2021, employees across the UK saved £114.6 billion in their pensions. This is a real terms increase of £32.9 billion compared to 2012 when Automatic Enrolment was introduced.
The figures reveal how the policy has transformed pension saving over the last ten years by normalising workplace pension saving, establishing a culture of retirement saving for a new generation, and helping foster a greater sense of security in later life.
More than 10.7 million employees were paying into a workplace pension in 2021. The proportion of women saving into a workplace pension, be it in the public or private sector, jumped by about 50% since 2012. Furthermore, young people have benefitted, with those aged 22 to 29 saving into a workplace pension more than doubling in the same period.
Saving for your pension can be tax efficient, but only so long as you can afford to tie up your money for what could amount to many years.
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