Govt confirms no change to 0.75% auto-enrolment charge cap

But 'clearer case' for change expected in 2020

clock • 2 min read

The government will not change the level or scope of the 0.75% charge cap on auto-enrolment (AE) schemes, Guy Opperman has confirmed.

In a written statement to Parliament, the pensions and financial inclusion minister said "we do not feel now is the right time" to make any changes to the cap which "is working broadly as intended". Nevertheless, the Department for Work and Pensions (DWP) does expect "a much clear case for change" to be apparent at the next review in 2020, using evidence gained from the recently announced mandatory publication of costs and charges in defined contribution (DC) schemes. Opperman wrote the regime will enable trustees, independent governance committees and members to "monitor and evaluate...

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 Retirement

PA360: Crucial advisers can spot all vulnerability characteristics

PA360: Crucial advisers can spot all vulnerability characteristics

‘It is highly likely people in decumulation will have a vulnerability’

Hope Coumbe
clock 26 April 2024 • 1 min read
Inflation shocks driving another long uptick in annuity sales

Inflation shocks driving another long uptick in annuity sales

‘Customers should be careful that this is the right decision for them’

Hope Coumbe
clock 23 April 2024 • 1 min read
Advisers warn market volatility will threaten retirement plans

Advisers warn market volatility will threaten retirement plans

More than half expect clients to postpone or change plans

Isabel Baxter
clock 26 March 2024 • 2 min read