ABI back auto-enrollment to give worked 'much needed nudge' to saving

The introduction of an auto-enrolment workplace pension scheme will provide a much-needed push towards saving for a pension, according to the Association of Insurers (ABI).

From October, people in the UK will become auto-enrolled in new workplace pension schemes designed to foster a culture of saving in the UK.

The initiative cannot come soon enough for the ABI either, who pointed to research showing  53 per cent of people not in a company pension scheme will stay opted-in once it begins.

A further 30 per cent of people are also undecided, meaning the proportion moving into the auto-enrolment system could prove substantial.

ABI director of life, savings and protection Maggie Craig welcomed the statistics, describing the research findings as "encouraging" for the beginning of the scheme.

"Half of workers are either not saving into a pension or not saving enough, so auto-enrolment will give many people the much needed nudge to save for their retirement," she said.