Auto-enrolment (AE) eligibility should be expanded to include people aged between 16 and 75, provided they earn enough, while the upper earnings limit should also be raised for qualifying earnings, a think thanks has suggested.
An Institute for Fiscal Studies (IFS) report, published as part of its pensions review in association with Abrdn, noted between 5 and 7 million defined contribution (DC) private sector employees would likely meet lower than expected retirement outcomes, and included recommendations for AE policy. The IFS report also suggested employees should have access to 3% contributions from employers, even if they do not contribute, while average and above average earners, as well as possibly those between 50 and 55 years old, should have increased contributions above the 8% default. There should...
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
