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...Both have come under pressure as the auto-enrolment reforms have swollen pension participation from 9.3mn in 2012 to more than 20mn today, according to figures from the Office for National Statistics....
...In this context, it’s vital that the government accelerates the extensions to auto-enrolment that form the private member’s bill now going through parliament....
...In addition, the changes will remove a salary threshold at which pension contributions are calculated, meaning auto-enrolled workers will potentially have hundreds of pounds contributed to their pension...
...The changes to automatic enrolment, confirmed this week, come more than a decade after the policy was introduced....
...Contributions are falling short despite auto-enrolment policies introduced in 2012 boosting contributions....
...Despite the advent of auto-enrolment in 2012 helping boost pension savings for some women, many still fall under the £10,000 threshold due to the type of work they’re able to participate in alongside full-time...
...I’m not knocking auto-enrolment, which has been fantastically successful, but just like company pension schemes, it hasn’t been designed with consumers in mind....
...Reforms include lowering the age for pension auto-enrolment from 22 to 18. Any rise in minimum contribution levels might have to be delayed until businesses and employees alike feel less squeezed....
...Auto-enrolment has been an unmitigated policy success in bringing millions of workers inside the tent of pension savings....
...While auto-enrolment has been a success in encouraging more than 10mn workers to start investing (the majority in plain vanilla “default” funds), this “hands-off” mentality cannot persist when we come to...
...UK auto-enrolment contributions are at 8 per cent of salary, mostly from the employee, compared to an Australian system moving to 12 per cent....
...But the UK government also co-opted large chunks of the adult population into equity markets via pensions auto-enrolment without managing to spark interest or change attitudes: 80 per cent of adults contributing...
...In the decade since auto enrolment came in, many workers have ended up with a ragbag of pensions from different jobs....
...The focus should be on improving the retirement expectations of the more than 10mn auto-enrolment savers....
...Auto-enrolment into private pensions could be extended to cover more workers for instance, to provide more independence from the state pension....
...Letters in response to this article:Let’s remember why the triple lock was introduced / From Ian Thompson, London TW11, UK It’s time to accelerate UK pensions auto-enrolment / From Pete Glancy, Head of...
...The success of auto-enrolment means many more Britons have become investors without even realising it. A decade ago, only around one in three private sector workers paid into a company pension plan....
...Praising the “huge positive impact” of the policy, Gullis on Friday said it was “a no-brainer that we now need to extend auto-enrolment to those aged 18 and above”....
...Despite the success of auto-enrolment of employees into retirement funds over the past decade, nearly a third of the UK workforce are not saving for a pension at all, and most people are not saving enough...
...In a report on Friday, the IFS said that it had not observed a significant increase in pension participation or contribution rates among higher-rate taxpayers since the introduction of auto-enrolment a decade...
...Cross party agreement was obtained for pensions auto enrolment, which has boosted the retirement prospects of millions....
...Savers in the auto enrolment pension schemes receive minimalist communications; in truth most do not know what they are invested in....
...Nest is the UK’s largest automatic enrolment workplace DC pension fund, with more than 12mn members and £30bn under management....
...“Although auto-enrolment has been very successful, most people won’t need to worry about having a large pension fund and instead they will be concerned about having enough money in retirement,” says Moffat...
...Self-satisfaction about auto-enrolment, now set at 8 per cent of salary, of which just 3 per cent comes from the employer, is part justified and part premature....
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