Impact on the younger age group – Generation Y and Z Since being auto-enrolled, 18-34 year olds are more likely than older age groups to: • Have an increased interest in saving for retirement – 51% vs 49% overall • Take a more active role in considering their future and whether they are saving enough for retirement – 62% vs 56% overall • Feel confident that they will have saved enough to fund the lifestyle they would like in retirement – 62% vs 52% overall • Yet, 56% say they pay less attention because it happens automatically, compared to 45% overall • 52% are less inclined to take any action because it’s taken care of for them, compared to 48% overall • 48% feel more positive about retirement, compared to 47% overall • 22% grudge paying into a pension There’s a need to build greater engagement among younger age groups through education and support, underpinned by more personalised guidance. Reaching this group at the earlier stages of their pension journey will help more of them make informed decisions in order to benefit from their pension savings. Groups of workers who don’t qualify for auto-enrolment There are concerns that some groups of people are being left behind as not all workers qualify for auto-enrolment. Alongside the 10 million that have been auto-enrolled into a pension are a further 10 million workers who are still not in a workplace pension scheme. These employees are mostly women, younger workers, and a growing segment of gig economy workers (estimated to be around 5 million).13 A decade of auto-enrolment: has it helped or hindered saving psychology? 23
RkJQdWJsaXNoZXIy MjA4NTgz