In its latest auto-enrolment update, the Department for Work and Pensions has claimed that auto-enrolment pensions will enable 10 million extra workers to save £17 billion a year before the close of the decade. Employees will put in £8 billion, while £6.9 billion will come from employers' contributions and £2 billion from tax relief by 2020. 76 per cent of workers met both the earnings and age eligibility criteria for automatic enrolment and employers with more than 500 employees were predicted to be the biggest contributors by 2019 to 2020, followed by businesses with between five and 49 employees.
Commenting on the DWP report, pensions minister Richard Harrington said: "It is clear we are helping to create a culture of saving, giving people a much-needed boost to their pensions and the important work on roll-out continues."
We strongly recommend that clients speak to a pensions adviser as soon as possible. We have specialist advisers who are able to assist. Please contact Matthew Burge or your usual Beavis Morgan Partner.