Natanje Holt: Four AE issues to address with contributions set to rise

Potential impact on opt-out rates

clock • 4 min read

With AE contributions set to rise from next month, Natanje Holt picks out four auto-enrolment issues the financial services sector must address sooner rather than later to ensure opt-out rates remain low

So far, the introduction of auto-enrolment has been considered a success. Opt-out rates have remained low and this should only be seen as a positive. Up to now, however, the level of contributions has also been very low - just 2% - and it is clear there is still a long way to go if we want to provide people with a sufficient pot for retirement. To that end, April will see this contribution level increasing to a total minimum of 5%. Raising the contribution levels is the right next step - at current amounts, people are not saving enough for an ample retirement fund - and yet the impact th...

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