20 June 2023
A new study from NOW: Pensions, finds that young people aged 11 to 27 (86%) support the UK government’s proposal to reduce the age of automatic enrolment (AE) from 22 to 18.
The survey conducted, also found the willingness to explore AE from age 16, with two-thirds (66%) of young adults supporting this and echoing recent parliamentary debates. The study further revealed that 89% of students think pensions should be made a bigger part of the national curriculum.
The Pensions (Extension of Automatic Enrolment) (No. 2) Bill is currently making it’s way through the House of Lords. The Bill permits two extensions to automatic enrolment – abolishing the Lower Earnings Limit (LEL) for contributions and reducing the age for being automatically enrolled to 18 years old. This will have a great impact on pension savings for young people and low earners.
NOW: Pensions, states:
‘’NOW: Pensions welcome Government support for the private members bill that will enable these measures. But we would like to see additional Government commitment on delivery of these measures – including a roadmap for implementation, and an update to Parliament within 12 months of Royal Assent. This will ensure savers will benefit in the foreseeable future, and enable savers, employers, schemes, and the industry to plan and work with Government on implementation.
In addition, we suggest this Bill also offers an opportunity for Government to commit to other key matters for the future of AE pension saving and pension saver outcomes – including a formal review of AE to establish consensus about strategic direction on matters such as scope and contribution levels – to ensure it evolves beyond its initial implementation stages and remains relevant and fit for purpose.’’
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