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Rachel Reeves, the shadow work and pensions secretary, has announced proposals to extend the scope of auto enrolment by reducing the threshold for eligibility from £10,000 to £5,772. Responding to the Labour Party's proposals, Dr Yvonne Braun, Head of Savings, Retirement and Social Care, Association of British Insurers, said: "We welcome these proposals. Automatic enrolment into workplace pensions has been a huge success so far with millions more people saving for their retirement. Workers earning more than the lower earnings threshold but less than £10,000 a year currently have to make an active decision to join their employer’s pension scheme and are not automatically enrolled. "These proposals extend the benefits of automatic enrolment to lower paid workers and would help build a stronger savings culture across our society. Any changes would need consultation to ensure they could be implemented with minimum unnecessary cost to scheme administrators and employers.” |
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