Requiring Auto-Enrollment: Lessons from UK Retirement Plans

Published on 27 March 2019

Policymakers around the world are concerned that workers aren't saving enough for retirement. But the UK is the only country to have completed a nationwide roll-out of a policy requiring all private sector employers to auto-enrol workers in a pension.

Key findings

Policymakers worldwide are concerned that workers are not saving enough for retirement, in part due to a lack of coverage by employer-based plans.
The United Kingdom has recently completed a nationwide rollout of auto-enrollment, with the ability to opt out.
In the wake of this initiative, participation rates have jumped to around 90 percent at medium and large employers and 70 percent at small employers.
Most of the increase is among workers making the minimum default contribution, but the share contributing at higher rates has also risen significantly.

Authors

Carl Emmerson

Deputy Director

Carl, a Deputy Director, is an editor of the IFS Green Budget, is expert on the UK pension system and sits on the Social Security Advisory Committee.

Jonathan Cribb

Associate Director

Jonathan is an Associate Director and Head of Retirement, Savings and Ageing sector, focusing on pensions, savings and later-life economic activity.