“Automatic Enrolment is a good news story during what otherwise has been a challenging time for politics. It’s success is hard to argue with as the report shows not only has the overall number of people now in a pension increased, more people are proactively asking to join a scheme and the gender pension gap is decreasing.
“However, the job is not done. How many of those enrolled have looked to see if the default fund is appropriate? Are they aware that by itself minimum contribution saved through AE are unlikely to give them enough for a comfortable retirement?
“Engagement is going to be harder to achieve and measure, but it needs to be a focus. One of the best ways to realise just how far your money will stretch is to engage a financial adviser. They can paint a realistic picture of how much you can live on day by day in retirement and whether you’re on track to achieve that goal. Given AE has been facilitated through employers, the onus is on them to find a way to either promote or provide financial advice and guidance.”