Pension experts have attacked auto-enrolment as "a glorified ISA" and a "pointless scheme", warning savers will never get a decent retirement pot due to low contribution rates.
Speaking during the Pension Prophets panel at Pensions and Benefits UK 2016 on 28 June, they warned the policy was likely to disappoint auto-enrolled savers. Independent Trustee Services Limited director Peter Askins said auto-enrolment was a "policy too far". He told delegates: "Auto-enrolment can never be meaningful. Whether it is 1%, 2% or 3%, it [the contribution] is never a meaningful amount. 8% is not a meaningful amount. "I think it's cruel and a deception to say to people they are going to get a pension from auto-enrolment over the next ten years. No, they're not; they're g...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
