Pensions - Articles - Automatic Enrolment reaches its final staging date


1 February 2018 marks the final staging date in the automatic enrolment which launched in 2012. The Pensions and Lifetime Savings Association (PLSA) explains what this date means for savers, employers, the pensions sector and Government.

 Nigel Peaple, Deputy Director Defined Contribution (DC), Lifetime Savings and Research at the PLSA, comments: “More than five years on from the launch of automatic enrolment and we now have 9 million more people saving into a workplace pension, with lower than expected worker opt-out rates and higher levels of employer compliance. This all suggests that automatic enrolment has been successful in reversing the decline in workplace savings.

 “Tomorrow marks the last staging date under automatic enrolment, which means that all employers have a legal requirement to start the process to ensure that by 01 July 2018, all eligible workers are enrolled into a workplace pension scheme.

 “The next significant milestone in the implementation of automatic enrolment will be 6 April 2018, when employers and employees will see their pension contributions increase under phasing.

 “Whilst it’s important to recognise the hard work that has been put into automatic enrolment, it’s vital we don’t become complacent.

 There remains an important communications challenge for Government, the industry and employers to ensure that people do not opt-out of their scheme when their pension contributions rise in April and that current and future generations continue to strive towards a better income in retirement.”

 One of the questions in the PLSA’s recent Hitting the Target consultation was whether an increase in the level of minimum automatic enrolment contributions – beyond those already planned – is desirable and, if so, whether contributions could be increased without discouraging people from saving. Feedback to the consultation is currently being analysed and the final report is planned to be published later this year.
   

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

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.