Watch: What next for pensions? Why the 2020s are the crunch decade
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
- Guy Opperman MP – Pensions and Financial Inclusion Minister
- Lord Willetts
- Pete Glancy – Head of Pensions Policy, Lloyds Banking Group
This event was kindly supported by Lloyds Banking Group
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