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

'Significant gap' found in HMRC's SIPP data

'Significant gap' found in HMRC's SIPP data

No data identifying SIPPs or junior SIPPs as distinct categories, Aberdeen Adviser FOI finds

Isabel Baxter
clock 01 July 2026 • 2 min read
Strong chance 'nightmare' IHT pension reforms will 'simply not work'

Strong chance 'nightmare' IHT pension reforms will 'simply not work'

Baroness Ros Altmann says the policy is ‘fraught with dangers’

Holly Roach
clock 30 June 2026 • 1 min read
Politicians urged to address long-term sustainability of state pension triple lock

Politicians urged to address long-term sustainability of state pension triple lock

Aegon says triple lock debate is ‘not a simple case of keep it or scrap it’

Holly Roach
clock 23 June 2026 • 3 min read