Automatic enrolment is a cross-party success story, with more than 9.6 million workers enrolled in pensions saving and more than 1.2 million employers meeting their duties. Approximately 9,000 eligible jobholders have been automatically enrolled in my hon. Friend’s constituency, with 1,600 employers meeting their duties and supporting them.
Typically, the young are a difficult demographic to encourage to save early, as retirement seems a distant milestone to them. What steps is the Minister taking to encourage more people entering the workforce to stay in their workplace schemes to ensure that they have steady incomes when they retire?
My hon. Friend is right, and younger people agree with that. When NOW: Pensions carried out research, it found that only 4% of its 22 to 29-year-old members opted out. Our “Automatic enrolment review 2017” set out our plans to make saving the norm by lowering the age of automatic enrolment from 22 to 18. When an employee pays in, the employer pays in as well, and the Government pay in the tax relief.