Govt reiterates commitment to reducing AE age limit

Pensions Minister Guy Opperman has reiterated the government’s commitment to reducing the automatic enrolment age limit from 22 to 18.

In an answer to a written question, Opperman said that the government’s ambition to lower the age limit would “enable more people to begin to save”.

He conceded, however, that employers, payroll and “other delivery partners” would need time to plan for the changes.

Employers would need time to “adjust to costs over the coming years” before the government’s proposed changes would be able to be implemented.

He added: “We also want to understand properly the impact of the April 2019 contribution increase before committing to a timetable for the proposed changes.”

The government initially announced its intentions as part of its 2017 Review of Automatic Enrolment, which stated: “We want pension saving to be the norm when people start work, and therefore want young people to benefit from automatic enrolment.”

Automatic enrolment contribution levels are set to rise in April, although recent government research found that many workers were unaware of the contribution increase.

The number of workers who have been automatically enrolled into a workplace pension scheme reached 10 million in January 2019.

    Share Story:

Recent Stories


Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.