The challenge
Private pension saving had been declining for years, and fewer than half of private sector workers were saving into a workplace pension.
The case
From 2012 the UK required employers to automatically enrol eligible workers, those aged 22 to State Pension age earning £10,000 or more a year, into a workplace pension. Workers can opt out. In 2025 employer contributions made up 61% of the money saved, employees' own contributions 27% and tax relief 12%. According to Department for Work and Pensions statistics, the share of eligible employees in Great Britain saving into a workplace pension rose from 55% in 2012 to 90% in 2025. In the private sector, where the change was biggest, it rose from 42% to 88%.
Why it worked
Changing the default from opting in to opting out turned pension saving from the exception into the norm for private sector workers, without forcing anyone to save. In the public sector, where most workers already saved, participation rose more modestly, from 88% to 93%.
Sources
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