Pension industry news! The Private Members’ Bill that aims to help people, including low earners and younger workers, save more into their pension and look after their financial futures, has been granted Royal Assent. This means Auto-Enrolment will be expanded.
The Bill :
– Reduces the age for Automatic Enrolment
– Creates powers to scrap the lower earnings limit
– Sees eligible employees made members of their workplace pension scheme without needing to ask
Since its introduction in 2012, Automatic Enrolment has transformed UK pension saving, with nearly 11 million people enrolled. Automatic Enrolment has particularly benefitted women, young people and lower earners. The proportion of eligible women in a workplace pension has increased from 59% in 2012 to 89% in 2021, while the proportion of eligible 22 to 29-year-olds has more than doubled – from 35% in 2012 to 86% in 2021.
The new Bill includes a statutory requirement to consult on the implementation approach and timing.The Department for Work and Pensions (DWP) will launch a consultation on implementing the new measures.