Age limit on auto-enrolment worries Aegon

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Failure to reduce the upper age limit on auto-enrolment into workplace pensions from state pension age (SPA) may mean workers near retirement will lose their savings to means testing, Aegon says.

Pensions minister Steve Webb today announced automatic enrolment into workplace schemes will only apply when a person earns more than £7,475 per year. The earnings band, in line with the income tax threshold set to be introduced next April, is considerably higher than the previously proposed level of £5,035. Auto-enrolment will apply to everyone in employment aged 22 to SPA, which will reach 66 by 2020. But Aegon argues in its response to the review that the upper age limit should be reduced initially to 55, as workers already near retirement who have not saved previously risk losi...

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