Topic updates
Automatic enrolment in pensions - a successful behavioural nudge?
10th May 2018
The ONS has published a series of data tweets supporting the view that the introduction of auto-enrolment into workplace pension schemes has been a success in increasing the number of people with an occupational pension. I've added them to this blog in part because there is a clear step change in pension participation, the longer term effects remain to be seen. Many people contribute at low levels so for them, it is unlikely to be a game changer in terms of their real living standards once retired. But as a famous advertising slogan once said, "every little helps"!
Since the introduction of automatic enrolment in 2012, the proportion of workers who contribute to a workplace pension has increased by almost a quarter https://t.co/hhkJDSNzku pic.twitter.com/mciswKvuN0
— Office for National Statistics (ONS) (@ONS) May 8, 2018
Automatic enrolment has increased pension participation among the younger generation – 63% of private sector workers aged 22 to 29 paid into a defined contribution pension in 2017, up from just 16% in 2012 https://t.co/JwBPtlgVg4 pic.twitter.com/axQipl3MGm
— Office for National Statistics (ONS) (@ONS) May 8, 2018
Far more people in low paid jobs – including caring and leisure, sales and customer service, and elementary occupations – pay into a workplace pension than before automatic enrolment in 2012 https://t.co/0gifBdj1QQ pic.twitter.com/fbCanQxtwN
— Office for National Statistics (ONS) (@ONS) May 8, 2018
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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