Pensions - Articles - Time to start building on the success of auto enrolment

 “It’s essential that we continually review the success of policy changes to ensure they are working for savers. As we prepare to mark the 10th anniversary of auto-enrolment, the next steps are crucial in building on its success.

 “The immediate priority is to put in place firm plans for the implementation of the 2017 Automatic Enrolment recommendations.

 Reforms to lower the age from 22 to 18 and removing the lower earnings threshold will significantly increase the number of people saving in a workplace scheme, and substantially increase the amount being paid in for lower earners.

 “For the self-employed, if we harness the nudge principles which have been successful in automatic enrolment we will hopefully encourage greater pension savings among this largely under-saved population.

 “One of the biggest challenges facing the industry is engaging workers with later life saving, and it’s encouraging that responsible investment is getting the attention of savers – reinforcing the notion that investment is not just about returns, but can also be a force for good.

 “We should also start planning how we might raise contribution levels from the current rate at 8% of earnings, to a level that will deliver greater financial resilience in retirement. While now might not be the right time to implement such changes, we should have a strategy for how this will be done in the years ahead.”