Into the noise of recent pension debates, the ONS quietly released the long-awaited Wave 8 (2020-22) of its long-running Wealth and Assets Survey. The results provide an opportunity to step back from the heady maelstrom of the last few months and consider where auto-enrolment stands today.
A decade ago, the UK’s pension system changed forever as auto-enrolment brought millions of people into pension saving for the first time. The numbers soared, but for years, median pension pots dropped as a wave of new savers entered the pension system for the first time with zero balances. That phase is now firmly over. Between 2018-20 and 2020-22, the median pot increased by £3,000 to £7,000—the first meaningful sign of that we are in a phase of growing accumulation rather than just growing participation.
While a pot size of £7,000 for 2020-22 might not sound like much, a simple projection forward to 2022-24 suggests average pot sizes are on track to soon cross the crucial psychological milestone of £10,000, where historical research has suggested people start to take their pensions more seriously. The long-awaited delivery of the Pension Dashboard could accelerate this shift, giving savers a clearer, consolidated view of their retirement savings and nudging them towards engagement.
What makes this growth more impressive is that it happened against a difficult backdrop—Covid, inflation, and economic uncertainty. The resilience of auto-enrolment is clear, but some signs of strain are evident in the data as well: the total number of active savers dipped slightly. That suggests opt-out rates may be rising as people prioritise immediate financial pressures over long-term savings, a trend the policymakers should take note of if the long-term effectiveness of the system is to be maintained.
Auto-enrolment has done its job in getting people saving. But just being in the system isn’t enough— if opt-outs are to be kept low, people need support along the way to make good decisions about their pensions. Mass personalisation could be key here. Providing more tailored financial help at the right time, based on individual circumstances, could make a huge difference in ensuring people engage positively with their long-term savings journey and stay on track for a more secure retirement.
This is especially relevant in light of the FCA’s current consultation on targeted support for pensions. There’s growing recognition that a one-size-fits-all approach doesn’t work, and that well-designed interventions—whether through digital tools, employer engagement, or financial guidance—could help people make better choices. Encouraging engagement at the right moments could mean the difference between drifting towards an inadequate pension (or even out of pension saving altogether) and actively engaging people in shaping a more secure future for themselves.
The data says we have moved firmly past the start-up phase. The era of passive participation is ending—mass personalisation, timely interventions, and the right mix of digital, guided, and advised support will define the next decade of auto-enrolment. With the FCA’s targeted support consultation in full swing, now is the moment to rethink how we empower savers with relevant, personalised, and accessible help at the right time.
So, what’s your strategy? How will you ensure auto-enrolment delivers not just participation, but real financial outcomes? Now is the time to innovate to shape the future of pension engagement.
For a more in-depth conversation on how Altus Consulting can support those looking to drive this revolution forward please get in touch. We believe the industry is ready to move beyond getting people into pensions—it’s ready to help them get the most out of them.
