However, putting politics to one side, the biggest reason for not making a change now is to avoid disrupting the passage of AE. Just over three years into this great ‘nudge’ experiment, more than 100,000 employers have enrolled more than 6m employees. And it is going remarkably well, with around 90 per cent of those enrolled staying in.
This year is arguably the biggest test yet, with around 0.5m employers setting up pension schemes in the space of just a few months. That is probably more schemes than had been established prior to that since the dawn of time.
It would be a very brave decision to change the rules of the game at this point. As such, the government’s decision to avoid doing anything just now was a welcome one.
Jamie Jenkins is head of pensions strategy of Standard Life
| Key points |
The UK’s private pensions system is structured around the principle that tax relief is granted upfront. There is no evidence that the help-to-buy Isa has increased pension opt-outs. The biggest reason for not making a change now is to avoid disrupting the passage of auto- enrolment. |
