AE review calls for lower earnings limit to be scrapped

18-year-olds eligible from mid-2020s

clock • 3 min read

The government has set out plans to scrap the auto-enrolment (AE) lower earnings limit and extend the programme to 18-year-olds, although no changes will take effect until the mid-2020s.

Ahead of the much-anticipated publication of the AE review tomorrow, the Department for Work and Pensions (DWP) has announced a package of measures designed to include more people in the AE regime and bring in a total £3.8bn of additional annual contributions. Under the plans, employees will still be subject to the earnings trigger - set at £10,000 for the 2018/19 tax year - but, once they earn above this amount, all earnings would be pensionable. AE reform's 'lethargic' pace to create 'lost generation' - Steve Webb Currently, the first £5,824 of earnings are not pensionable, but t...

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

Sounding the alarm: Facing the retirement reality check

Sounding the alarm: Facing the retirement reality check

'At the heart of the issue is a worrying lack of engagement'

Laith Khalaf
clock 17 June 2025 • 3 min read
Why we plan holidays, not retirements: Changing the client conversation

Why we plan holidays, not retirements: Changing the client conversation

'This is scary for us as an industry but even more scary for us as a nation'

Verona Kenny
clock 04 June 2025 • 4 min read
Inflation drives 'modest' rises in PLSA's Retirement Living Standards

Inflation drives 'modest' rises in PLSA's Retirement Living Standards

Majority of pre-retirees expect to live with someone else in retirement

Martin Richmond
clock 03 June 2025 • 8 min read