The figures are a ringing endorsement of the ongoing success of Automatic Enrolment despite the backdrop of a challenging economic environment. The greater volatility of ‘opt out’ for new savers remains relatively low – and although we don’t want to make too many assumptions, this is encouraging in a period of higher cost of living and pressure on personal finances.
“The success of AE is undeniable in supporting people into pension saving. The progress achieved so far, and figures published today provide a robust platform to consider the next steps for evolving the policy. We must now look at how to ensure those who are not currently eligible are supported by AE, that the disparity between gender and ethnicity groups is addressed, and that the focus is switched to the adequacy challenge.
“The future of AE is a project that cannot be rushed - but neither can it be delayed. Otherwise, we risk missing a prime opportunity to support millions to achieve a good retirement outcome, and to secure confidence in saving for the years to come.
“We welcome the Government’s announcement of a full pensions review, which will include exploring adequacy. We believe the collaborative development of a roadmap for evolving AE must be at the core of this, to give businesses and savers clarity for the future, and better outcomes.”
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