Employers will be required to contribute to a pension scheme on behalf of their workers, as part of legislation introduced to parliament in today's Queen's speech.
The new Pensions Bill includes powers to introduce mandatory employer contributions into a qualifying pension scheme, and to require the automatic enrolment of eligible employers.
It also enables the Personal Accounts Delivery Authority to move from acting in an advisory to an executive capacity, and for a personal accounts scheme to be set up.
The government said automatically enrolling eligible workers into a pension would tackle current behavioral barriers to pension saving. However, individuals would have the tight to opt out.
It added the introduction of a minimum employer contribution would improve incentives to save and increase pension participation.
The personal accounts scheme will aim to give those without access to a good quality pension scheme, in particular low to moderate earners, the opportunity to save. The governnment estimates seven million people are currently not saving enough for retirement.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.