Entrepreneur & former Dragons Den star Theo Paphitis As part of the government's long term drive to help working people save more towards their retirement, Monday the 6th July will see the DWP (Department of Work and Pensions) start their latest drive to raise awareness of auto enrolment. Over the next few weeks, television viewers across the UK will see adverts presented by Theo Paphitis, the former Dragons Den star telling small and micro employers that auto enrolment is round the corner.
Up until now, nearly 50,000 big employers have finished the process of auto enrolling their members of staff, but this represents just 3% of all employers. Now the focus is on the 1.3 million smaller businesses that employ the remaining 97% of the workforce that are due to be auto enrolled. The first stage of auto enrolment has gone well, but this was to be expected with larger companies have dedicated finance and pension functions who are able to keep up-to-speed with the requirements for auto enrolment.
The situation however is different for small and micro businesses who do not have access to this kind of expertise internally. The new adverts starring Theo Paphitis will aim to raise awareness amongst directors and owners of small and micro businesses to ensure that they make preparations now and make sure that the auto enrolment of their employees goes as smoothly as possible.
By the time the introduction of auto enrolment is completed in 2018, it is thought that there could be over nine million workers who will be newly saving or saving more towards their retirement. Paphitis, has long been a cheerleader for workplace pensions, first taking part in the DWP's 'I'm in' campaign over three years ago. He said:
"Automatic enrolment is proving to be a huge success, with clear long-term benefits for hardworking employees. Once they're in, the overwhelming majority of people are choosing to stay in."
Theo's view is borne out by the latest data from the auto enrolment process which has seen 90% of people deciding to remain in their auto enrolled pension once they have been enrolled into it. This is more than was expected and is a testament to the effectiveness and success of the process so far.