Among the SPP's key recommendations are:
Recognising employers who go further: Introduce a national accreditation scheme to celebrate and reward employers who contribute above statutory minimum levels.
Supporting financial resilience: Encourage sidecar savings and introduce an 'opt-down' facility, allowing people facing temporary financial pressures to temporarily reduce contributions rather than leave their pension scheme
Make it easier to contribute directly to pensions for younger family members: The non-earner pension contribution limit (£2,880 net) has remained unchanged for over a quarter of a century, and many are unaware the option exists.
Building on automatic enrolment: Gradually increase minimum contributions towards 12% of total earnings, with employers and employees sharing the responsibility equally at a minimum of 6% each.
Giving employers and workers time to plan: Introduce any contribution increases over a six-year period, providing certainty and allowing businesses and individuals to adjust.
Together with the various other recommendations in the response, these proposals offer a positive and practical framework for the next phase of pension reform, building on the foundations of automatic enrolment while recognising the importance of affordability for both employers and employees.
Calum Cooper, President of the Society of Pension Professionals (SPP), said: “Automatic enrolment has been a tremendous success, and we now have an opportunity to build on those foundations. There is no single solution to improving pensions adequacy, but a combination of sensible, phased contribution increases, getting people saving earlier, encouraging employers to do more and providing greater flexibility for savers can make a real difference.
Our recommendations are intended to support the Government’s work and contribute practical ideas to help create a pension system that works better for everyone – individuals, employers and future generations of pensioners.”
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