Pensions minister Steve Webb has defended the government's auto-enrolment system.

He stated the solution, which will see eligible workers automatically signed up to their company's pension scheme unless they choose to opt out, will "not act to leave people poorer in retirement".

Instead, the purpose of the initiative is to encourage individuals to save and Mr Webb said putting money away instead of getting into debt will build the basis of a strong economy.

He made these comments as the coalition confirmed yesterday (November 28th) that auto-enrolment will be launched in autumn 2012 as planned.

However, smaller enterprises - which include those with fewer than 50 workers - are being given some leeway and will not begin enrolling their employees until May 2015.

Mr Webb stated: "We recognise that small businesses are operating in tough economic times so we are softening the timetable for implementation."

The minister previously stated the current pension system is overly complicated, which is why employers must embrace auto-enrolment and take on the responsibility of making staff members save.

© 2011 Adfero Ltd. All rights reserved. Any views and opinions expressed in news articles are not those of Just Retirement Limited. News supplied by Adfero DirectNews.