When politicians decided something must be done about the low level of pension savings, the government bit the bullet with auto-enrolment. But the question remains: has enough consideration really been given to the effectiveness of the solution?
When auto-enrolment came along, all parties leapt on the bandwagon. By adopting it as a policy, they could be seen to be tackling the problem. However there has not been enough analysis of whether the solution is going to fix the problem. Since the original idea of auto-enrolment was mooted, the idea that the main reason individuals have not been saving for their pension was down to inertia has turned from a theory into an unquestionable fact. The opt-out clause, where individuals can decline to be forced to save, was assumed to be a feature that would preserve individual rights, b...
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