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You asked: Why is auto-enrolment being introduced?

Auto-enrolment - automatic membership of a suitable pension scheme with compulsory employer contributions - is being introduced because:

  • the government estimates about seven million people are not saving at all for retirement, or not saving enough
  • life expectancy is increasing - people will live longer in retirement and the size of their pension fund needs to be greater to fund this
  • the government may not be able to afford to keep state pensions at their current level in the longer term.

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