Automatic enrolment scheme leads to record levels of workplace pensions in Scotland

Automatic enrolment in a workplace pension means that more than 400,000 people in Scotland are now saving for their future.

The scheme was introduced by the UK Government in 2012 to encourage more people to save towards retirement and new figures from the Department of Work and Pensions (DWP) show that in some local authority areas it has doubled the number people with a private pension.

However, some businesses have warned of the rising cost they will have to bear to fund staff pensions in future with more people living longer. Workers have the right to opt out of the pension – instead of opting in, as used to be the case.

Emily Martin, an assistant manager at Lebowskis bar and restaurant in Glasgow, is among those who now have a pension as a result of auto-enrolment.

She said: “It’s easy to be working shift patterns and planning for the future is quite difficult to do, so the idea of someone doing that for you – I wouldn’t opt out of that whatsoever. I think the biggest thing is knowing that you’re going to live out your golden years, and you’re not going to get to that stage of your life and realise you’re penniless.”

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