The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
In April, minimum auto-enrolment (AE) contribution rates increased from a total of 2%, with a 1% minimum employer contribution, to a total of 5%, with a 2% minimum employer contribution. The survey results outlined in the watchdog's Auto-enrolment ongoing duties report published on 11 October found that when the rate went up, the cessation rate - the mean proportion of members asking to leave the scheme across all employers implementing increased contributions - was just 1.8% for micro, 1.7% for small, and 0.9% for medium employers. The regulator identifies firms with 50 to 249 staff ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
