1. Remove qualifying earnings and instead base contributions on every pound of earnings, which would significantly improve outcomes for savers.
2. Review the auto enrolment trigger, to ensure low paid and part time workers are given the opportunity to save for their retirement.
3. Address the net pay anomaly. The government needs to work with the Treasury and HMRC to address this inequality, as all savers should be treated equally, regardless of the scheme they are in.
4. Rebalance contributions to minimise opt outs and address the fact that nearly a quarter (24%) of auto enrolled savers say they “definitely will” or “might” opt out, when minimum contributions hit 8% of qualifying earnings in 2019*.
5. Set the roadmap for increasing contributions beyond 8%, and ensure people will be able to enjoy the same the sort of standard of living in retirement as they did in their working years.
Morten Nilsson, CEO of workplace pension provider NOW: Pensions says: “In order to safeguard the future of auto enrolment, and with it, the future of millions of people in UK, we believe the government needs to address these five key areas when it undertakes the review of auto enrolment in 2017.
“We strongly urge the government to consider these changes in order to improve auto enrolment and ensure the long term success of the policy.”
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