Addressing the Chartered Institute for Securities & Investment (CISI) Financial Planning Annual Conference, Royal London director of policy Steve Webb called for a 'Save More Tomorrow' scheme to be put in place and legislated for in the UK.
As the former pensions minister explained, the schemes ensure that, when someone receives a pay rise, they pre-commit to placing a higher proportion of their earnings in their pension than they currently do. He said there was "very clear evidence" this type of scheme works, adding it was "very effective" in the US. Webb also said the behavioural insight of Save More Tomorrow was an "obvious one" and called for the scheme to be legislated through an 'opt-out' approach, similar to auto enrolment. "People are willing to be virtuous tomorrow but not today," Webb told the conference. "Ask...
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