Four million auto-enroled in pension pots ABOUT 4m Brits working for more than 21,000 businesses have been automatically enrolled into pension schemes since the system was introduced almost two years ago. The figures from thePensions Regulator show 4.03m workers have been automatically enrolled, while another 8.6m eligible workers were already in a pension scheme. The scheme is designed to push more people into saving for the long term, without forcing them to – workers can opt-out of the scheme if they want to. But economists fear it is depressing wages as companies put extra resources into the pension savings, rather than into staff pay packets. Data published earlier this week showed average weekly wages fell 0.6 per cent in the year to June, the first fall in cash pay since 2009. “Our pet theory is that auto enrolment in pensions is increasing labour costs, as employers have to put money into employee pensions – but this makes it harder to raise basic pay,” said analyst Alan Clarke from Scotiabank. “Furthermore, this is a multi-year programme and if it is a key reason for subdued wage inflation, then it isn’t going to go away in a hurry.” Source: cityam/ newsinlondon/four-million-auto-enroled-in-pension-pots/
Posted on: Fri, 15 Aug 2014 01:45:33 +0000
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