6.7m now paying into private pensions says DWP
Auto-enrolment is encouraging more people in sectors previously poorly reached by pensions to sign up, says the Department of Work and Pensions.
Britain's salesmen, bar tenders and hotel staff are among workers at the forefront of the country's pensions' revolution – with rising rates of saving among their ranks outstripping those of other sectors, according to the DWP.
Nationwide, 6.7 million people are now investing in a private pension across the UK, a 4 percentage point increase on the 5.9 million who were doing so in 2012.
New figures released this week show the private sector industries and occupations which have seen the most significant growth in pension saving since 2012.
Sales and customer service has seen a leap in participation of 15 percentage points, from 27% to 42%, while those working in distribution, hotels and restaurants have seen a climb from 27% to 36%.
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Other parts of the economy seeing a big jump in pension saving include energy and water, where the number of staff participating in a scheme has risen from 64% to 74%.
These workers are spurring a "turnaround in what was a decade-long decline in private pension provision", says the DWP, with the government's automatic enrolment policy a key factor behind the reversal, according to the deparment.
Pensions minister Steve Webb said: "Automatic enrolment is transforming the way Britain's workers see pension saving and, as these industry-by-industry figures show, we're seeing the change we need across the whole economy."
Automatic enrolment is being introduced in a phased approach, with every employer in the country due to offer eligible staff a workplace pension by 2018, regardless of how many people they employ.
This means that over the next 4 years, the DWP expects the number of pension savers across all industry sectors to climb further, giving people across society the chance of a better retirement.
So far about 4.7 million people have been automatically enrolled.
Other key facts from the DWP's latest report, Workplace Pension Participation and Savings Trends: 2003 to 2013 include:
• £39.7 billion worth of pension savings in the private sector in 2013 – £11.3 billion in employee contributions – £24.5 billion in employer contributions, and £3.9 billion in tax relief
• total annual amount saved in private and public sector pensions stood at £77.6 billion – up from £73.3 billion in 2012
• there was a 4 percentage point rise for both men and women saving in private sector schemes with 47% of men and 44% of women saving in 2013
• automatic enrolment started with the biggest employers first – private sector firms with 5,000 or more staff have 64% saving, up from 49% in 2012
• pension saving in the public sector remained high at 5 million (90%)