Hybrid Savings Account Research

Auto-enrolment has created a new generation of savers across the UK. Millions of people are now building their retirement savings, often for the first time. However, many still have little or no money on hand to protect themselves from the effects of unexpected, short-term financial shocks. In partnership with NEST Insight, the Money Advice Service wanted to explore whether the success of the auto-enrolment model in pensions could be applied to help address the lack of short-term, emergency savings.

One possible solution is a new concept, a hybrid savings product called a pensions sidecar account. This is a liquid, capped savings account which sits alongside a workplace pension, topped up by additional contributions.

The Hybrid Savings Account Research report, produced by Revealing Reality, aims to identify the best way to frame the sidecar proposition to employees, how best to deliver it, and to present robust recommendations that will inform a large-scale field trial in 2018.