Briefing Note 62 - What are the lessons from KiwiSaver for automatic enrolment in the UK?
Automatic enrolment in workplace pensions has the potential to significantly change private pension provision. The Government has recently estimated that there could be between 5 and 8 million new savers in workplace pensions, of which between 2 to 5 million could be in NEST. The UK will be the second country in the world to introduce auto -enrolment in workplace pensions at the national level after New Zealand in 2007. Despite the significant differences in legislation, automatic enrolment rules and market structure between the two countries, the experience of New Zealand with auto-enrolment provides useful lessons for the UK
This Briefing Note analyses New Zealand’s experience with auto-enrolment and the possible implications for the UK. It finds that the workplace pensions landscape could significantly change and that coverage, contribution rates, opt-outs and affordability need to be carefully monitored.
To download Briefing Note 62, please click here.
Keywords: kiwisaver, new zealand, NZ, NEST, government, national employment savings trust, state pension age, international, coverage, contribution, opt-out, self-employed, automatic enrolment, auto-enrolled