Our survey of the progress of pension automatic enrolment in the workplace finds that employers are going above and beyond what is legally required. Of the 1,080 employers surveyed, 68% have automatically enrolled eligible workers into a pension scheme. The average employer contribution to the pension schemes of newly enrolled workers is 5.6% of salary and the average employee contribution is 4.7%, while the legal minimum is 1% each.

Among those who have yet to go through auto-enrolment some are predicting negative consequences of the pension changes, in terms of employment and pay. However, of those who have already gone through automatic enrolment, 22% report that there are no significant extra costs, while 38% report that they have been able to absorb the additional expense. By contrast, 14% restricted or stopped wage growth while 13% scaled back on hiring or reduced staff numbers in response to the pension reforms.

"... those private sector companies that have adopted a ‘high-road’ business strategy are more likely to have higher contributions and lower opt-outs as well as being more likely to review default pension charges and default suitability. "

Content of the report

Summary of key findings

  1. Progress, arrangements and schemes
  2. Contribution and opt-out rates
  3. Strategic and operational reviews
  4. Responses to automatic enrolment costs
  5. The trend towards extending working lives
  6. Conclusions

    Background to the report

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    Download the Survey report below.

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