Pensions - Articles - Minimum income cap should be scrapped for auto enrolment


A recent Scottish Widows Retirement Report has suggested those with multiple jobs are missing out on £90million of employer pension contributions because they don’t meet the minimum wage threshold. Currently, only those earning more than £10,000 per year in a single job are automatically enrolled, excluding nearly 2million ‘multi-jobbers’ whose income is split.

 Stuart Price, Partner and Actuary at independent financial services consultancy Quantum Advisory, is calling for the £10,000 cap to be scrapped so that all workers from the age of 18 to State Pension Age would be included. Stuart says: “When auto enrolment was reviewed at the end of 2017, one of the outcomes was for the net to be widened so that 18-year olds will be included from the mid 2020’s. While this is a step in the right direction, I believe the government should have also removed the minimum wage requirement.

 As well as ensuring many more would be saving for their retirement provision - which would overcome this multiple job issue - it would also make the auto enrolment administration process easier for employers and pension providers. A simplified system could also mean a reduction in the charges passed on to members.”

Back to Index


Similar News to this Story

Alexa ask Aviva what is the value of my pension
Aviva has created a new pension skill for Amazon Alexa which allows customers to find out how much they have saved towards their retirement.
Majority would prefer monthly income from protection policy
A recent Aegon survey* found that 58% of people would prefer insurance that pays a monthly income rather than a lump sum. Recognising this preference,
ACA response to consultation on stronger powers for TPR
In its response to the consultation on stronger powers for the Pensions Regulator, the Association of Consulting Actuaries (ACA), whilst expressing ‘s

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.