Employers Urged To Be Positive On Pensions

Group News HeaderPension Pot

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.