No automatic solution to bridging the pensions divide

pensions

Auto-enrolment is effective in getting more people to join pension schemes but people enrolled that way do not make active decisions and end up saving less

The Pensions Commission recognised the effectiveness of automatic enrolment in increasing participation in pension schemes. The commission's report and the subsequent White Paper include automatic enrolment as part of the package of reforms that address the problem of falling pension scheme membership and inadequate retirement saving. Automatic enrolment has been used in the UK for quite a few years. It ensures that new employees automatically join their company's pension scheme unless they sign a paper-based opt-out. This article sets out to examine both the desired and the possible uni...