MONEY
AUTO-TOPSY
Phil Scott dissects the government’s auto-enrolment programme
to see if it is delivering on its aims
W
ith an ever-greater number
of employees being
automatically enrolled
into a workplace pension, the UK’s
well-documented retirement savings
shortfall should, in theory at least, be
on the way out.
However, two significant
obstacles remain: namely that
millions of workers aspiring to
retire in comfort are still not
saving enough and that the growth
potential of many company
pension portfolios is being stunted
2
as a result of being too cautiously
positioned.
Legislation introduced in 2012
declared that all employers must
offer a workplace pension scheme
and automatically enrol eligible
workers in it. Official numbers
show that, to date, more than five
million employees have been
placed in such a scheme and by
2018, when the roll-out is complete,
it is hoped that up to nine million
people will be saving for retirement
in this way.
THE PLACE T <