Best practices and performance of auto-enrolment mechanisms for pension savings

December 2, 2021

Full report

The report ‘Best practices and performance of auto-enrolment mechanisms for pension savings’ written by our subsidiary, LE Europe, has been published by EC DG FISMA. Please click on the link above for the full report.

Automatic enrolment (also referred to as auto-enrolment) is a mechanism that encourages pension saving by enrolling individuals into a pension scheme unless they actively choose to opt-out. This study identifies and evaluates 32 best practices for the design of auto-enrolment pension schemes, informed by an in-depth qualitative and quantitative assessment of pension schemes in selected EU and non-EU countries and consultations with pension experts and stakeholders. The best practices cover the entire saver’s journey, including the initial decision to save through a pension, fund choice, growing pension entitlements and post-retirement choices. In addition, best practices are presented on the implementation of an auto-enrolment pension scheme. Finally, a scoreboard is presented that assesses each best practice against key evaluation criteria, including its relative importance in the functioning of an auto-enrolment pension scheme and its impact on performance measures, namely participation, savings and investment returns.