In the UK, auto-enrolment has been a game-changer for workplace pensions, significantly increasing participation rates in employer-sponsored retirement savings plans. Following the introduction of auto-enrolment in 2012, pension participation among private-sector workers increased from 40% to more than 80% by 2024,55 demonstrating the power of default enrolment in promoting long-term financial security. This approach uses behavioural nudges by automatically enrolling employees while allowing them to opt out, countering the inertia that often prevents people from saving. –Alongside auto-enrolment, the sidecar savings model allows individuals to create accounts for both short- term emergencies and long-term retirement savings, encouraging consistent saving while ensuring access to funds when needed.56 –Workers can set up automatic contributions to their sidecar savings accounts, simplifying the saving process and promoting a culture of saving for both immediate and future needs. Employers can enhance financial security by offering matching contributions. –Recent trials reported a median emergency savings balance of £384 after 12 months, demonstrating that the model is helping individuals begin to build financial resilience, and a small but growing population of savers also rolled over pension contributions. For gig workers or those taking time off as carers, this model can be especially beneficial by providing a dedicated emergency fund that supports them during periods of uncertainty. Addressing both the need for liquidity in emergencies and the importance of retirement savings, the sidecar savings model helps contribute to overall financial stability.United Kingdom auto-enrolment and sidecar savings – a flexible approach to financial resilience Future-Proofing the Longevity Economy: Innovations and Key Trends 2727

Future Proofing the Longevity Economy 2025