Automatic Enrolment (AE) is one of the stand-out policy successes of recent years. A genuine cross-party initiative, it has transformed how people in the UK save for their retirement. Before the scheme began in 2012, fewer than 50% of employees were saving into a pension. Today more than 70% are.
But it is only a start. At current contribution rates, AE will not provide an adequate retirement income for many. What’s more, it doesn’t help the 4.8m self-employed people in the UK. Guidance, advertising, publicity and tax reliefs have all been deployed to make saving as attractive as possible; initiatives that are sensible in their own right, but still people aren‘t saving enough for their retirement.
By the decade's end, we will be seeing people who spent most of their careers in the post-final salary pensions world retiring - will this mean that instead of getting richer over the years as they have been, pensioners will start getting poorer again?
Despite the success of auto-enrolment, are pensions savings still inadequate? Join Prospect for the second in our series of What next for Pensions?..
Baroness Altmann - Chair
Matt Rodda MP - Shadow Minister for Pensions
David Linden MP - SNP Spokesperson on work and pensions
Jo Cumbo - Global Pensions Correspondent, FT
Pete Glancy - Head of Policy, Pensions & Investments, Lloyds Banking Group
This discussion is kindly supported by Lloyds Banking Group