Government called on to raise AE contribution level

Report from B&CE

Martin Richmond
clock • 2 min read

The government must reassess the auto-enrolment (AE) contribution level as pension savers are being misled into thinking they are saving enough for retirement, B&CE says.

The provider of The People's Pension said an alarming number of people are only making the minimum contributions towards their retirement, which is not enough. The report, Pensions Adequacy: A Pension Saver's Perspective, found over half of AE pension savers (57%) were merely making the minimum employee contributions. Furthermore, two thirds (65%) were receiving the minimum contributions from their employers. According to the Pension and Lifetime Savings Association's Retirement Living Standards, savers will need to have saved £10,900 a year for a ‘basic' level of retirement. For a ‘m...

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