Pensions - Articles - Savers unaware as Auto Enrolment contributions to increase

 “But, as auto enrolment minimum contributions increase, savers need to know that as well as their employer putting more in, they’ll be a jump in the amount coming out of their own pay packet. The vast majority of savers are completely in the dark about these rises and the DWP campaign does nothing to enlighten them.” 

 Research conducted by NOW: Pensions revealed over two thirds (62%) of auto enrolled savers are unaware that minimum contributions are increasing from 2% to 5% of qualifying earnings in April 2018 and to 8% in April 2019.

 While over two thirds (68%) decided not to opt out of their workplace pension, nearly three quarters (74%) were unaware that if they opted out of their workplace pension or ceased active membership, that they would be automatically re-enrolled every three years.

 Adrian continues: “Communicating the increase without scaring the horses isn’t easy - but this major knowledge chasm needs to be addressed hand in hand with reinforcing the benefits of workplace pension saving.”

 These findings echo research NOW: Pensions conducted last year which revealed nearly two thirds (63%) of auto enrolled savers are unaware that minimum contributions only apply to “qualifying earnings”.