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

    Read the blog

    Download the Survey report below.