Auto-enrolled employees will be putting aside £8bn of savings for retirement by the 2019/20 financial year, according to the Department for Work and Pensions (DWP).
The department's analysis, published 13 October, shows another £6.4bn will be saved through employer contributions, and a further £2.5bn from tax relief, making a grand total of £16.9bn.
The DWP also estimates just over 11 million people will be made eligible for AE by 2020, with 10 million of those expected to remain in the schemes based on a 10% opt-out rate.
Pensions minister Richard Harrington (pictured) welcomed the figures.
He said: "It is clear we are helping to create a culture of saving, giving people a much-needed boost to their pensions and the important work on roll-out continues.
"My mission is to ensure everyone has the opportunity to benefit from a workplace pension. For some people, this may be the first time they have saved in this way, and we must help them build a big enough savings pot so they can enjoy a comfortable retirement."
Newton Investment Management UK head of defined contribution pensions Catherine Doyle added better communication with members was needed to further bolster AE.
"AE is succeeding in bringing millions of people into saving for retirement for the first time, but it is just an initial step," she said.
"By communicating strategies in a clear and accessible way, we can bolster trust and an appreciation of the long-term value generated by sound investment approaches."
However, the analysis also revealed a significant gender gap within the AE policy. Despite earning more than the minimum income threshold, due to the income being spread over multiple jobs, 30,000 were not eligible to opt-in to AE in the 2015/16 financial year. All of the 30,000 were women, according to the analysis.
Meanwhile, just 36% of the DWP's target market are female, at 4 million of the 11.2 million eligible target group.
Just under two-thirds (65%) of female workers are currently eligible for AE, compared to 76% of all workers.
Aegon head of pensions Kate Smith added these workers were not building up any savings for retirement due to their additional ineligibility for national insurance (NI).
"Nearly 30% of low earning, multiple jobholders are still ineligible for AE, and it's mostly women who are falling through the cracks, representing 86% of this population.
"This means they won't benefit from an employer contribution and won't even be building up a state pension, as they earn less than the NI lower level of £5,824 per annum (£112 per week), so don't pay NI contributions or get NI credits."
An additional 90,000 people, of which 80,000 were women, were able to opt-in to schemes, although ineligible to be auto-enrolled.
Smith added: "While the DWP's analysis outlines a substantial number of people being eligible to opt-in, our experience with workplace pensions indicates that this approach is not working as people aren't taking it up."
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