IFS questions whether auto-enrolment has been too successful among financially vulnerable

'Financial vulnerability could increase'

Jonathan Stapleton
clock • 2 min read

Thousands of the country’s most financially insecure individuals are remaining in auto-enrolled schemes even if it may not be in their best interests to do so, the Institute for Fiscal Studies (IFS) finds.

In a paper authored by Pascale Bourquin and Rowena Crawford, the research institute said auto-enrolment (AE) has been hugely successful - noting that over 90% of eligible private sector workers were now members of workplace pension schemes. But the IFS said making pension membership the default had particularly boosted coverage among the young, the low-paid and the financially insecure. And it said it was "surprising, and perhaps worrying" there was no difference in participation rates at all across groups with different levels of financial security. It noted that even among the le...

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