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Responding to the National Employment Savings Trust (NEST) annual research report on pensions auto-enrolment published today, TUC General Secretary Frances O’Grady said: “Pensions auto-enrolment is a huge public policy success. The last government deserve praise for being bold enough to compel employers to contribute to pensions, as does this government for taking the policy forward and resisting calls to exclude small firms. “The NEST research shows that the policy is working. There are fewer opt-outs than expected and consumers now see pension saving as a bigger priority – something that education campaigns have always failed to deliver. “NEST also deserve praise for showing that auto-enrolment can work for any size of employer and be delivered at charges that would have been inconceivable even a decade ago. This has shaken up the market and encouraged other low cost schemes. “But there is still more work to do. Contributions must increase if auto-enrolment is to deliver decent retirement incomes, especially at a time when the government is reforming the state pension in a way that cuts public spending in the long term. “Consumers also need more assurance that their pensions are well governed, smartly invested and delivered at the lowest possible charge.” |
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