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Auto-enrolment contributions to be tripled for millions
Minimum inputs for workers will rise to 3 per cent of salary from April.
Millions of workers who have been auto-enrolled into company pensions will see their contributions triple next month as the government steps up efforts to nudge people into saving more for retirement. Currently, workers who were signed into a pension plan by their employer are only required to pay a minimum contribution of 1 per cent on a slice of their earnings, with their employer also paying the same amount.
However, from April 6 minimum contributions for workers will rise to 3 per cent of their salary, while employer’s payments rise to 2 per cent.
While the increase has prompted fears that some savers could consider opting out of their workplace pension, experts say it will put people on track towards building a decent retirement income. Click here to read full article.