The UK Government has just completed a review of automatic enrolment and have published their findings. Five key recommendations are:
- Automatic enrolment should continue for all employers irrespective of size and sector
- Automatic enrolment should apply from age 18 (currently 22), this would introduce 900,000 young people to retirement saving
- Pension contributions should be calculated from the first pound earned rather than the lower earnings level as is currently the case, in order to increase the incentive for employees not to opt out
- The earnings trigger should remain at £10,000 for 2018/19, albeit subject to annual review
- Contribution levels should be reviewed again after the increase in contribution rates in April 2019.
For more information on this or any other HR matter, please get in touch.