Auto-Enrolment Changes?
8th April 2024
Could there be Auto-Enrolment changes?
The UK Government has recognised that auto-enrolment contributions need to increase in order to cover projected short-falls in personal pension pots. In September 2023, a bill to reduce the age for auto-enrolment and abolish the lower-level qualification threshold received Royal Assent. It is projected that the average earner’s pension pot could increase by almost 50% if saving across their entire career, while a minimum wage earner could see as much as a 85% increase.
The Department for Work & Pensions (DWP) proposed the launch of a consultation period regarding the implementation of the new measures. However, no mention has been made regarding employer contributions, nor indeed, whether employee contributions will be increased from the current 5% level. Until such time as the results of the consultation is known, it remains uncertain whether the Government will introduce the bill before the next election.
Get In Touch
Contact your local Whitings office today for more information or advice on auto-enrolment.
Disclaimer - All information in this post was correct at time of writing.
