Auto enrolment - half a million more employers and other numbers

27 August 2015
We've trawled through the recent Pension Regulator's compliance reports, strategy document, press releases and research findings to bring you the highlights in numbers.

Total workers of employers who have declared their compliance, July 2012 to July 2015

Total workers of employers who have declared their compliance, July 2012 to July 2015

Total: 20,332,000

  • 54,224 employers have confirmed to TPR that they have met their duties, July 2012 to July 2015.

Source: TPR, Automatic enrolment declaration of compliance report, July 2012 - end July 2015

Selected powers used from July 2012 to June 2015

Selected powers used from July 2012 to June 2015

Source: TPR Automatic enrolment Compliance and enforcement, Quarterly bulletin 1 April - 30 June 2015

...as 1.8 million employers see their automatic enrolment duties switched on in the coming years we do expect to see a rise in the number of times we will need to use our powers".
Charles Counsell, Exective director of automatic enrolment, TPR

Source: TPR press release PN15-36, 30 July 2015

Reasons why workers opt-out

  • Being concerned about the affordability of contributions
  • „„Satisfaction with pre-existing pension provision„„
  • Feeling that they were too close to retirement to begin saving into pension
  • Feeling that the overall contribution rate was too low
  • Plans to leave their employer soon
  • Having concerns about pensions as a vehicle for saving

Source: TPR Automatic enrolment, Commentary and analysis: April 2014-March 2015

Number of employers who have used postponement, July 2012 to March 2015

  • 51.7% (23,704)

Source: TPR Automatic enrolment, Commentary and analysis: April 2014-March 2015

Breakdown of employers due to stage by size

Employers due to stage by size

  • The number of anticipated employers due to stage will increase by approximately 500,000.
  • This is primarily due to an increase in the number of new businesses that have started up and fewer employers going out of business than originally forecast.
  • The peak period is July - September 2017.

Source: TPR Automatic enrolment, Commentary and analysis: April 2014-March 2015

Who have you consulted, or plan to consult about auto enrolment?

  Size of employerStaging date
Small employers (5-49 employees)
%
Micro employers (1-4 employees)
%
August to November 2015
%
January to November 2016
%
January to April 2017
%
Currently use an adviser 65 30 60 34 30
Currently or plan to use an adviser 89 69 85 71 70
Base (all employers)  240  345  87  365  92
           
Financial adviser (IFA) 20  15  28  20  23 
Pension provider 14  24  10 
Accountant 31  38  29  51  46 
Payroll software company  
Payroll bureau
Bank    
Trade body
Base (all employers who have consulted/planned to consult) 212  212  89  268  93 

Source: TPR, Employers' awareness, understanding and activity relating to automtic enrolment and evaluation of communications campaign, Spring 2015 - A Summary Research Report, published August 2015.

Next steps

It's been said before and it's worth saying again; employers need to start preparing as early as possible.

About the author

Jamie Clark

Business Development Manager

A self-confessed 'Pensions Geek', Jamie reads Pensions Acts for breakfast. He's spent the last three years working on automatic enrolment and has talked to hundreds of advisers and employers about how they can best prepare.

Last updated: 27 Aug 2015

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.