The UK’s 2012 auto-enrolment pension policy has significantly increased workplace pension participation, particularly among employees who might not have saved otherwise. However, concerns persist about whether individuals are saving enough for retirement and variations in saving behaviour. Using the Understanding Society longitudinal panel survey, this study examines behavioural and economic factors influencing pension saving.

This study explores two key questions. First, it compares employees who meet auto-enrolment criteria based on their pension participation. Findings suggest that traditional predictors—such as age, income, education, and marital status—have become weaker indicators of pension saving since the policy’s introduction, indicating a flattening of previous participation inequalities. However, employer type remains a differentiating factor.

Second, the study examines whether individuals aged 45+ can estimate their retirement income as a percentage of their current income or if they respond “Don’t Know.” Findings remained consistent across survey waves, with differences based on income, age, and gender. However, pension participation did not significantly enhance individuals’ awareness of their savings adequacy.

While auto-enrolment has increased participation and reduced inequalities, it has not necessarily improved individuals’ engagement with their retirement savings. Findings highlight the limitations of default nudges in fostering long-term financial awareness, suggesting a need for policy and pension scheme administration shifts towards enhancing individuals’ understanding of pension adequacy.