Inertia has helped participation overall, but hindered voluntary engagement Inertia is only part of the explanation for low engagement Both industry and policymakers acknowledge the need to increase active engagement in pensions, but what is meant by engagement is not fully defined. It’s helpful to look at the field of consumer behaviour research where there has been a considerable focus on understanding consumer engagement in the last decade – including a focus on how to conceptualise, define and measure engagement. In driving engagement, it’s useful to consider what type(s) of engagement we want to see and what actions or interventions may be needed. Our research identifies the need for a framework to define what engagement means when it comes to encouraging people to be aware of their pension saving and how much they’ll need to fund later life. This framework would enable individuals, organisation, industry and government to monitor and measure pension engagement success. Key drivers of auto-enrolment engagement are earning more money and access to financial advice • Those with a financial adviser are paying more than the statutory minimum auto-enrolment contribution. 73% of those with a financial adviser compared to 35% without a financial adviser. These two factors are likely to be related. • 45% say they pay less attention to their savings after being auto-enrolled because it happens by default. This rises to 56% among 18-34 year olds. 26 A decade of auto-enrolment: has it helped or hindered saving psychology?
RkJQdWJsaXNoZXIy MjA4NTgz