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Impact on Society
24 June 2010
Target group for automatic enrolment into pensions to be reviewed
Impact on Society
Radical pension reforms are set to come into force from 2012 that will lead to the majority of employees being enrolled automatically by their employer into a private pension. IFS researchers found that this reform would boost pension coverage and pension saving but that, as individual circumstances change over time, there would likely be a large number of pension accounts containing relatively small amounts of contributions. The new Coalition Government, while in favour of the principle of automatic enrolment, has announced a review of the target group for this policy. This review is to be led by IFS Research Fellow Paul Johnson.