The UK should establish a workplace ISA to reinforce auto-enrolment and avoid high-opt rates, according to Centre for Policy Studies research fellow Michael Johnson.
Giving evidence to the Work and Pensions Select Committee, Johnson argued auto-enrolment could be undermined by rising minimum contribution rates in the next few years. To prevent this, a workplace ISA combined with the Lifetime ISA (LISA) could allow employees a degree of flexibility on their savings and make auto-enrolment more sustainable, he said. His comments come on the back of concerns from many in the industry that the LISA announced in the March Budget could lead many people to opt-out of pension funds. Under current proposals for the LISA, from April 2017 people aged und...
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