Enable savers to take ownership of their money

For me, getting this communication right is crucial to ensuring people are empowered to make the right decisions so that they can enjoy a financially comfortable retirement. 

Review to build on the success of AE

Connected with this, one of the most important priorities for me over the coming months is to continue the successful roll-out of automatic enrolment, building on the success we’ve already seen.

Equally, I want to help people understand the benefits of remaining in the pension scheme set up by their employer.

Almost 7m more people are already benefiting by saving into a workplace pension. This is excellent news, and just what a step-change has taken place is demonstrated by the Institute for Fiscal Studies’ estimate that 95 per cent of the increase in workplace pension membership between 2012 and 2015 was a direct result of this policy.

What is particularly encouraging is to see gaps narrowing. Groups of people who were less likely to save into workplace pensions prior to automatic enrolment - especially eligible employees aged 22 to 29 and lower earners - are now seeing the largest increases in participation.

To build on this momentum, before the end of the year I will be announcing the scope of a review to take place, to ensure that automatic enrolment continues to work for employers and individuals alike. 

Increase members' engagement through better tools

However, while getting people to save more is hugely important, we also need to help people interact with and understand what is being put away on their behalf.

Pensions are often seen as too complicated and savers just leave others to get on with it, without keeping check on how much is going into their pension.

I want to change this, and my vision for pensions is to get people taking more ownership of their own money.

We have already seen through the expansion of online banking that people enjoy more instant information about their finances – why can’t we do the same for pensions?

If better, more dynamic tools were provided we could help millions of savers see more easily that the money being saved is theirs, is growing, and is simply deferred pay for when they choose to retire.

My challenge to all pension providers is to consider how you can boost transparency for your customers. If we can get people interacting regularly with their savings, I believe we can further entrench the culture of saving that we are developing across the country.

Richard Harrington is the pensions minister