The government should review the entire automatic enrollment system to help young people and low-income people save for retirement and to encourage the general population to save more, Cushon said.
His white paper, Pensions we can be proud of, said that while the automatic enrollment rules have achieved “a lot in their nine years,” it was “clear” that changes were needed to help reach those “who need it most.”
Cushon recommended that the government consider changing the earnings trigger, earnings threshold and age restrictions to make more people eligible.
He also called for simplifying the tax relief system to make it fairer and allow people to see the value they can get by saving in their pension funds.
Former Pensions Minister and Cushon Advisory Board Member Baroness Ros Altmann said: “Cushon’s research shows that we need to make it as easy as possible for everyone to get a pension and once it is they are affiliated, we have to hire them, and for me, it’s about making people feel more connected to their pension.
The Covid-19 pandemic has resulted in a positive change in attitudes towards saving, especially among younger people, according to company research.
He found that people between the ages of 18 and 24 were almost twice as likely to think about their future finances as they were to focus only on today, with the company urging the government to explore taking advantage of this shift in business. state of mind.
Cushon recommended that employers be able to automatically enroll their employees in workplace savings programs with guarantees in place.
The suggestion follows his findings that 55% of employees said the pandemic made them more aware of the importance of saving for the future, although 11% said they couldn’t afford to. put money aside now.
The study found that six in 10 people (60%) want to be able to view their long-term savings, such as pensions, through an app and 52% said they would be more likely to save if their employer put it in. square. for them or if it came directly from their salary.
More than six in ten (62 percent) would stay in a company savings plan if their employer enrolled them, while about one in ten would opt out.
“It’s great to see that attitudes towards saving are slowly changing for the good, especially among young people who are now twice as likely to think about the future as they are here and now,” commented the CEO and Cushon founder, Ben Pollard.
“But there is still a lot to be done to support those who are not in this frame of mind.
“Like pensions before automatic enrollment, it is clear that inertia plays a big role. We believe the government should seek to allow employers to automatically enroll their employees in workplace savings programs, albeit with safeguards in place, such as education on savings versus savings. debt refund.
“We know from our research that the appetite is there among employees and, even without employer contribution, the majority would remain in a plan. In the meantime, employers should consider setting up company savings schemes as part of their benefits package and even consider contributing.
Cushon’s white paper also found that people still viewed pensions as complex, with 58 percent saying pension information was too complicated and 52 percent agreed they would save more in a pension. ‘they understood her better.
He also highlighted the interest of young people in tackling the climate crisis and recommended linking pensions to the issue to boost engagement.