Experts warn that government must amend current auto-enrolment criteria to ‘plug savings gap’
09 October 2019
Auto-enrolment has generally been regarded in a positive light since its introduction in 2012, as it has prompted a whole new wave of individuals to save money and plan for their futures. Figures indicate that the engagement rates are in surplus of ten million people and the fact that auto-enrolment also requires employers to make contributions to employee pension pots means that employees are receiving a benefit under the act.
Pensions Expert have published a report examining the outlook for pensions for the future with data compiled by Interactive Investor, who surveyed 10,000 members currently in, or nearing retirement. The findings do not reflect as positively as initially thought, with many respondents not looking upon retirement favourably with the consensus being that the majority intended to work beyond retirement age. It seemed that men were more likely to stay in employment for recreational reasons whilst for women, it would be because of financial motivations.
Experts have stated that the qualifying age should be reduced from the currently set figure of 22 to workers of the age of 18 and above and that the £10,000 earnings criteria should be widened so that it accommodates and considers those with multiple jobs. This is due to the response of the survey which identified a trend with savers disappointed that they didn’t start investing earlier in life and also just that they hadn’t saved enough in general.
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