Industry calls for radical overhaul of AE contributions

clock

The pensions industry has rejected government proposals to tinker with auto-enrolment (AE) earning thresholds and called for a complete overhaul.

Respondents to a Department for Work and Pensions (DWP) consultation said the government's own suggestions were "insufficiently radical". The four options that DWP proposed were: freezing the trigger at its current level of £10,000; raising it in line with inflation; increasing it to £10,500 in line with the threshold for paying income tax; or using the Pension Commission benchmark replacement rate to determine the trigger. The Association of Consulting Actuaries (ACA) said that the calculation of AE contributions should remain simple and not discriminate against part-time female work...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Budget 25: Rumours, possibilities and predictions

Budget 25: Rumours, possibilities and predictions

The industry speculates on the Budget and discusses the impacts of possible reform

Holly Roach
clock 25 November 2025 • 8 min read
'A problem at the very top': Adviser campaigns for better overseas advice guidance

'A problem at the very top': Adviser campaigns for better overseas advice guidance

When is it safe to say the QROPS solution is the right solution?

Isabel Baxter
clock 29 October 2025 • 5 min read
UK pension funds join forces with government to launch Sterling 20 initiative

UK pension funds join forces with government to launch Sterling 20 initiative

Chancellor joins 20 pension providers and insurers to drive growth across the UK

Holly Roach
clock 20 October 2025 • 5 min read