In September, the Pensions (Extension of Automatic Enrolment) (No. 2) Bill, which permits two significant extensions to the Government’s Automatic-Enrolment initiative, gained Royal Assent.
Since first being introduced in 2012, almost 11 million people have been enrolled into qualifying pension schemes and so helped to start saving for retirement.
The Bill introduces powers to remove the Lower Earnings Limit (LEL) and to reduce the age for auto-enrolment, millions more young workers and low earners will be given the opportunity to save.
The reforms are aimed at improving financial resilience for all eligible workers, across the board.
Minister for Pensions Laura Trott said: “This will mean younger workers and those in lower paid employment will be able to fully participate in Automatic Enrolment.
“For the first time, every eligible worker will benefit from an employer contribution from the first pound earned – which will make a huge difference to their eventual pension.”
It is anticipated that the age for auto-enrolment will be reduced from 21, to 18, meaning that many young people will be able to begin to start saving into a pension from the start of their working lives.
The Department for Work and Pensions (DWP) will launch a consultation on implementing the new measures, taking into consideration both approach and timing.
Automatic-Enrolment support from GH Payscheme
Our BACS-approved payroll bureau can support you to ensure that you are fulfilling your auto-enrolment obligations, and to administer your chosen workplace pension scheme.
If you are unsure about what you need to do to fulfil your Automatic Enrolment duties, we can discuss your circumstances with you and help you to determine the appropriate next steps.
For more information about our payroll services, for employers in Bedfordshire, Cambridgeshire, Hertfordshire and throughout the UK, contact us today.