The Cut – Four lessons from the latest ONS pensions data

This can be contrasted with 1997, when 55 per cent of employees belonged to a workplace pension scheme. The data show a stark contrast in the types of schemes employers are saving into.

In 1997, 0.8 per cent of the workforce were in a group personal pension plan, compared with 11.6 per cent last year. Those in defined benefit schemes have decreased to 29.4 per cent in 2013 from 45.7 per cent in 1997.

Commentators hailed the data as a success for auto-enrolment.

@ONS evidence that AE really is changing UK pension saving

— steve jackson (@jacksosg) March 14, 2014

John Ball, head of UK pensions at consultancy Towers Watson, said in a statement: “When this snapshot was taken, only the biggest employers in the country were legally required to automatically enrol people into pensions. Today, you’d get a healthier picture."

The data also show a contrast between those working in the public and private sectors.

Employee and employer member contributions for defined contribution schemes are, unsurprisingly, much lower than other types of schemes, as shown in charts three and four below.

Contributions have been a sticking point for schemes, with some saying the onus falls on the member to put enough into the scheme to ensure a decent retirement income.

There is yet more to come as the auto-enrolment data work through the system.

ONS: 36% private sector employees in pensions. Snapshot taken 04/2013, when only firms with >6k workers in scope of auto-enrolment; now 250+

— David Robbins (@David_J_Robbins) March 14, 2014