A new study to find out whether employees enrolled in workplace pension schemes can be encouraged to save more by having their contributions increased on an annual basis is to be conducted for the Department for Work & Pensions.
Those taking part will have their monthly contributions increased each year on a voluntary basis. They will be notified when increases are taking place and by how much, and will be able to opt-out, or start and stop increases.
The study is part of the Government's commitment to maximising the potential of workplace pensions. The first one will involve provider Legal & General.
Our view
This route is likely to work much better. The default position being your pension payment will increase unless you tell us otherwise. Great idea!