Search

Pensions auto-enrolment: the story continues

The regime does not stand still. From 6 April 2018, there are changes to the minimum AE contributions that must be made by both employer and employee. The total of minimum contributions rises to 5% from this date, being a minimum employer contribution of 2% and staff minimum of 3%. Further increases apply from 6 April 2019, when employer minimum rises to 3% and staff minimum to 5%.

The government is monitoring the AE regime closely. Whilst TPR has published figures showing a record number of 9.3 million people saving for a future pension, there is still concern that even the projected increase in AE contributions is ‘unlikely to give all individuals the retirement to which they aspire.’ A recent government review pledges to focus on younger people, part-time workers and the self-employed in the next round of AE developments. One change suggested is lowering the age threshold for AE from 22 to 18. It is also suggested that pensions contributions be calculated from the first pound earned, rather than from a lower earnings limit. However, it is not expected that these changes will be implemented until the mid-2020s.

Please contact us if you would like advice on any matters raised here

News Categories

Request a call-back

I understand that the information that I have submitted will be held by Whittingham Riddell to enable us to fulfil your request. To understand how we use your data, please see our Privacy Policy
(If you're a human, don't change the following field)
Your first name.
(If you're a human, don't change the following field)
Your first name.
(If you're a human, don't change the following field)
Your first name.