The majority of employers who have begun automatically enrolling their workers are paying in the minimum level of contributions legally allowed, pointing to potential future disappointment for savers.
According to the BBC, the country's largest pension managers have reported the minimum possible level of contributions was being put in by between 66% and 90% of firms. Auto-enrolment contributions will eventually reach a total of 8% of band earnings: made up of 4% from the employee, 3% from the employer and an additional 1% in tax relief from the government. This is due to happen for all employers by October 2018. However, as the scheme gets off the ground contribution rates are being brought in at a low level and raised gradually. At present employees contribute just 0.8% of sala...
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