Five fascinating facts about AE as minimum contributions rise

Millions enrolled

Hannah Godfrey
clock • 3 min read

A new tax year brings new pension contribution changes. In celebration of a raise in minimum auto-enrolment pension contributions, Professional Adviser has put together five of the most interest facts about automatic enrolment (AE).

Today, minimum workplace pension contributions have risen to 5% after being at 2% of qualifying earnings since the inception of the government policy in 2012. Employers now have a duty to contribute a minimum of 2%, and employees will make up the further 3% to reach 5%. However, if an employer chooses to contribution more, for example, 3%, the employee will only have to contribute 2% to bring them up to the threshold. In April 2019, minimum contributions are set to rise again to a minimum of 8%. In celebration, Professional Adviser has put together five key facts about the polic...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Government confirms no compensation for WASPI women over state pension age changes

Government confirms no compensation for WASPI women over state pension age changes

DWP finds communication delays did not amount to financial loss

Martin Richmond
clock 17 December 2024 • 4 min read
Chancellor's move to pause Pensions Review 'deeply disappointing'

Chancellor's move to pause Pensions Review 'deeply disappointing'

Rachel Reeves has reportedly pressed indefinitely paused the review

Jenna Brown
clock 16 December 2024 • 3 min read
FCA targets pension transfers and SIPPs in major review

FCA targets pension transfers and SIPPs in major review

Regulator launches review of DC pension rules

Isabel Baxter
clock 13 December 2024 • 4 min read