Auto enrolment 'will have little effect on low earners'

The think-tank said the shift to automatic enrolment and increased requirements on employers to make contributions should boost pensions for existing savers but warned it would have little effect on those not currently offered the chance to join a workplace scheme. It said default pension contributions from the 4.7 million employees not offered the chance to join an employer pension in 2005 would have totaled £4.2bn. But it said many individuals would accumulate relatively small amounts - noting that, over the five years from 2001 to 2005, half of these 4.7 million employees would have ...