Should the Government exploit the success of auto-enrolment by
increasing savings amounts or extending it to include life and
protection insurance? Nick Hurman FCII Chartered Insurer explores
The Government's policy of auto-enrolment has brought nearly 6
million new members into pension schemes. This has been a
revolution in that it has brought about a striking reversal in the
previous long-term decline in long-term savings.
Albeit a slow revolution though: when auto-enrolment finally
'stages' to all employees in 2018, it will have taken 13 years
since the Turner Commission first recommended the strategy in
Whilst there are key challenges to overcome in the next couple
of years, the government and industry should exploit and build upon
a clear momentum behind the policy that clearly exists.
Two key issues still need to be addressed. The first is
delivering the levels of income in retirement that people on
average appear to want, through initiatives such as
The second issue is protecting savers' finances whilst they are
building their assets for retirement. For example, while addressing
the savings gap, it does not address the immediate needs of younger
savers such as income protection or life assurance.
The inclusion of auto-escalation of pension contributions and
integrated life cover into the auto-enrolment apparatus are
practical steps to take to address these
A review of auto-enrolment should be conducted now to gain
consensus to building in these features once the current
implantation is completed in 2018.
View the attached document »
CII report - what consumers want: research into the "new normal" in
retirement (Feb 2016) »
CII Thinkpiece: Homemade pensions: what do the pension
freedoms mean for property equity? (Mar 2015) »
CII report: Auto-enrolment and small businesses (Jan 2014)