Preliminary findings from new research into auto-enrolment point to a substantial increase in pension scheme membership among private sector employees.
The Department for Work and Pensions, which commissioned the study, said it indicates there are still significant challenges ahead.
The new report presents the preliminary findings from a nationally representative survey of private sector employers carried out jointly by the National Institute of Economic and Social Research (NIESR) and TNS-BMRB Social Research.

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According to the report:
• At the time of interview, two per cent of private sector organisations had passed their staging date. As larger employers are required to comply first, these organisations accounted for 32 per cent of all private sector employees.
• Around two-thirds (65 per cent) of staged employers already had a workplace pension scheme in place at the advent of the reforms. In the vast majority (94 per cent) of cases, these organisations chose to retain existing members within that scheme. The vast majority (92 per cent) also chose not to alter their contribution rate for their existing members. Most (74 per cent) also enrolled any non-members or new employees into their existing scheme.
• The percentage of employees who had opted out, or left, a scheme after being automatically enrolled was between 9 and 10 per cent.
• Overall, the percentage of private sector employees who are members of a pension scheme has increased from 26 per cent in 2011 to 35 per cent in 2013. As this was the first increase in membership for several years, this suggests that the workplace pension reforms have already had some effect.
• Among employers who had not passed their staging date, three-quarters were aware that employers will be required to automatically enrol all eligible employees into a qualifying scheme. Fewer employers (41 per cent) were aware of the minimum requirements regarding contributions.

Lucy Stokes, co-author of the report, said: "The increase in pension scheme membership among private sector employees is a positive sign. However, these preliminary findings also show that there are still significant challenges ahead.
"Among employers yet to pass their staging dates, many do not currently have a workplace pension scheme in place, and a sizeable proportion are uncertain about their plans."