Employers Urged to be Positive on Pensions Ahead of Rise in Minimum Contributions
Upcoming increases in minimum pension contribution levels have instigated fears that many employees will quit auto-enrolment.
From April 2018, all employees enrolled in pension schemes must pay in a minimum of 3% of their annual salary, with employers contributing 2% (currently it’s a minimum of 1% for both employees and employers).
In 2019, these levels will increase again reaching 5% for employees and 3% for employers.
A recent survey suggested that 62% of auto-enrolled employees were unaware of the forthcoming increases.
It is being advised that employers should paint a positive picture of pensions, as there are fears that the success of auto-enrolment could begin to reverse if the increases are not carefully managed, and communicated.