Mandating Pension Auto-Enrollment in the United Kingdom: Implications for the United States

Abstract

This article examines pension auto enrollment in the United Kingdom. It extends and updates an earlier analysis by Turner and Brown (2016). The U.K. experience is of particular interest, given the discussions in many states to establish a similar policy. The article first provides an overview of the goals of the U.K.’s new pension auto enrollment program. Second, it analyzes the phase in of the program and the auto enrollment requirements, as well as the required level of contributions. Third, the article discusses the National Employee Savings Trust (NEST) program, which is the government-sponsored pension provider. Finally, the article concludes with comments about auto enrollment policy in the United Kingdom and the United States.

TOPICS: Retirement, legal/regulatory/public policy, developed