Help Centre for Advisers

Why do we need auto enrolment?

The government estimates that around seven million people are not saving nearly enough for retirement, with many people not saving at all!

With life expectancy increasing, people will live longer in retirement and therefore the size of their pension fund needs to be larger to sustain this.

The maximum basic State Pension for individuals retiring in the 2016/17 tax year is just £155.65* per week, the actual amount depends an individual’s NI contributions and normally at least 10 ‘qualifying years’ National Insurance are needed to get any State Pension at all. For most people without additional retirement savings, this may not be sufficient to make ends meet. It should also be considered that the government may not be able to afford to keep State Pensions at their current level in the long term.

Therefore, auto enrolment has been created in everyone’s best interest to preserve our financial future.

* From 06/04/2016 the maximum payable to all people already in receipt of the existing state pension rises from £115.95 to £119.30 per week. All people reaching state pension age after 06/04/2016 are subject to the new flat rate state pension regime and the maximum payable is £155.65 per week.
“We were impressed with the simplicity of its scheme. The ease of implementation was also a big plus for us and has removed much of the administrative headache.” — Neil Tune, HR director at Fitness First
I am backing NOW: Pensions, the ATP project, because I believe it will encourage transparency, low costs and decent returns for millions of British employees. — Nigel Waterson, former Shadow Pensions Minister
I firmly believe in NOW: Pensions' principle that everyone deserves the right to a better retirement. I look forward to being part of the team which aims to achieve this in the UK. — Win Robbins, former Head of European Fixed Income Barclays Global Investors
I'm excited by the opportunity to help bring to the UK auto-enrolment market NOW: Pensions, a customer-friendly and responsive trust-based alternative to NEST and to contract-based offerings. — Chris Daykin, the former Government Actuary
I am excited to be joining such a distinguished Board of Trustees, over-seeing a modern, transparent, cost efficient and high-performing pension fund. — Win Robbins, former Head of European Fixed Income Barclays Global Investors