Extra pension money for 17,000 workers confirmed as frozen auto-enrollment threshold

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Auto-enrollment is where you are automatically placed into your employer’s pension plan. To be auto-enrolled you must be between 22 and the statutory retirement age and earning over £10,000

More people will be placed in a self-enrollment boarding house this year

Thousands of additional workers will be automatically enrolled in a pension plan this year, giving them more money for their retirement.

You are automatically enrolled in a company pension scheme if you earn over £10,000 a year, are over 22 and under statutory retirement age.

The government has just confirmed that this £10,000 earnings threshold will remain the same for the 2022-23 tax year, meaning thousands more people will benefit as wages rise.

An estimated 17,000 additional workers will be able to be automatically enrolled from April, according to the latest statistics from the Department for Work and Pensions (DWP).

Becky O’Connor, head of pensions and savings at Interactive Investor, said more people with money invested in their pensions is a “good thing”, but warned the government must help Britons by difficulty against the rising cost of living now.







Auto-enrollment is where you are automatically placed into your employer’s pension plan
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She said: “Pressure remains on the government to reduce the threshold to help low-income people build retirement savings, there is also a need to balance that with day-to-day income needs now.

“With the rising cost of living, it would be difficult to justify reducing the threshold now and prioritizing savings for the future rather than eating and heating now.

“At the same time, there are cases where people may have multiple sources of income, all below £10,000, and so can afford to put money into pensions from work, but don’t. currently.”

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, added: “Estimated figures indicate that 17,000 people could be taken on workplace pensions, many of whom will be women who have not earned enough. to be included.

“Helping them build a better financial future for themselves is a huge benefit and can help them weather future financial storms such as the one we are currently facing as the cost of living is reduced.”

Do you think you have saved enough for your retirement? Let us know in the comments below.

What is Automatic Retreat Enrollment?

Auto-enrollment is where you are automatically placed into your employer’s pension plan.

A company pension scheme is separate from the state pension, which depends on your national insurance contributions.

To be automatically enrolled you must be between 22 and the legal retirement age and earn over £10,000.

If you don’t fit into these categories, you can still apply to be registered – companies generally cannot refuse if you wish to register.

A minimum of 8% must be contributed to the pension, you contribute 5% and your employer contributes at least 3%.

Your contribution is deducted from your salary.

A DWP spokesperson said: “Auto-enrollment has succeeded in transforming retirement savings, with more than 10 million workers registered for a workplace pension to date and £28.4 billion additional savings per year since 2012.

“The Government’s ambition for the future of automatic affiliation will allow citizens to save more and start saving earlier by removing the Earnings Ceiling for contributions and lowering the age of automatic affiliation to 18 years in the mid-2020s, to the benefit of the youngest, – salaried and part-time workers since they will receive contributions from their employer from the first pound earned.

“We want to make sure these changes are made in an affordable way and time, balancing the needs of savers, employers and taxpayers.”

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