Thanks to auto enrolment, over 10 million more people are now saving for retirement. The enrolment process, coupled with the ‘set and forget’ payroll mechanism, has helped people to get saving for retirement and make regular contributions. However, automatically enrolled savers tend to have lower levels of engagement with their pension than those who actively signed up themselves. The challenge for the industry is now to find ways to effectively increase engagement and do so in a way that drives positive savings behaviours.
At Nest Insight, we’ve been working with our partners on a range of research programmes to build a better understanding of the existing behaviours of automatically enrolled savers, and to explore how those behaviours might be influenced to help them achieve better outcomes.