Majority of young savers supportive of plans to lower AE age

The majority (89 per cent) of young adults want pensions to be made a bigger part of the national curriculum, while 86 per cent support reducing the age of automatic enrolment to 18, research from Now Pensions has revealed.

The research, conducted in partnership with Debate Mate, surveyed more than 1,000 young adults aged 11-27 years, revealing that younger adults have been keen to explore auto-enrolment from age 16, with two-thirds (66 per cent) of young adults supporting this.

The government previously backed a Private Member's Bill to extend auto-enrolment to lower earners and younger workers, with Pensions Minister, Laura Trott, recently confirming plans to consult on these changes in autumn, subject to the bill achieving Royal Assent.

However, Now Pensions argued that whilst the government support for the recent Private Members Bill to extend auto-enrolment was welcome, additional commitment on the delivery of these measures is needed, including a roadmap for implementation, and an update to parliament within 12 months of Royal Assent.

In addition to this, Now Pensions highlighted the bill as a broader opportunity for government to commit to other matters for the future of auto-enrolment pension saving and pension saver outcomes.

In particular, it called for a formal review of auto enrolment to establish consensus about strategic direction on matters such as scope and contribution levels, to ensure it evolves beyond its initial implementation stages and remains relevant and fit for purpose.

Commenting on the findings, Now Pensions CEO, Patrick Luthi, stated: “We are one of the very few UK workplace pension providers who accept all employers and their employees into the scheme.

"We have long taken an interest in how to improve pension savings for our members and have worked with the Pensions Policy Institute (PPI) for several years to look at the scale of the pension savings gap, and how best to address the issues of chronic under saving for retirement.

"Government’s backing of this bill was a watershed moment for the pensions industry, one that we have long called for.

"While it is a moment for celebration, we’re not at the finish line yet and we will continue championed these proposals for the benefits of savers, working with government and industry stakeholders until these reforms are fully delivered.”

Now Pensions head of PR and campaigns and financial adviser, Samantha Gould, stated: "By partnering with Debate Mate, our aim is to help create a healthy relationship with money, savings and budgeting which should create advantages to these students in their adult lives.

"It is positive to hear that many of these students are engaged and want to understand more about savings and pensions as part of their schooling.

"A lot of people have financial regrets, quite often later in life, so if we can start to create an understanding about crucial financial topics that will stay with them into adult life, we can help them to shape their retirement journey.”

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