×

HOW TO BECOME A CLIENT

1 EMAIL OR CALL US.
2 ARRANGE MEETING.
3 BECOME A CLIENT

If you have any problems, please let us know, by sending an email to info@rmiaccountancy.com. Thank you!

OFFICE HOURS

Mon-Fri 10:00AM - 5:00PM
Saturday by appointment only!

SIGN IN YOUR ACCOUNT TO HAVE ACCESS TO DIFFERENT FEATURES

FORGOT YOUR PASSWORD?

FORGOT YOUR DETAILS?

AAH, WAIT, I REMEMBER NOW!
QUESTIONS? CALL: 0161 9137 958
  • LOGIN
  • SUPPORT

RMI Accountancy

RMI Accountancy

City firm of financial and forensic accountants

T 0161 4137 958
Email: info@rmiaccountancy.com

RMI Accountancy
Blue Tower, Media City, Manchester, M50 2ST

Open in Google Maps
  • HOME PAGE
  • ABOUT US
    • ABOUT US
    • Our Team
    • Our Testimonials and Reviews
  • SERVICES
    • FORENSIC ACCOUNTING
      • Forensic Accounting
      • Forensic Investigation
      • Fraud Risk Assessment
      • Fraud Prevention Plan
      • Forensic Audit
      • Forensic Services Guarantee
      • Forensic Accounting – Posts
    • Accounting Solution
      • Accounting
      • Contractor and Freelancers
      • Tax Planning
      • Payroll
      • Business Growth Analysis
      • Book-Keeping
      • Company Formation
      • Guidance for businesses
    • Media & Celebrities
      • Accountancy for TV, Film, Sports & Media
      • Trusted and Reliable Accountancy Services for Media Clients
      • Wealth Management
      • Property Tax Planning
    • Specialist Accounting Solutions
      • Dental Practices
      • Optical and Pharmaceutical Practices
      • General Medical Practices
  • CASE STUDIES
    • A Success Story
    • Case Studies
    • The Path to Success – Becoming a Client
    • Tax updatesTax updates
    • BLOG & STORIES
  • LIBRARY
  • CONTACT
FREECONSULTATION
  • Home
  • BLOG & STORIES
  • Pension
  • Auto enrolment extended to under 22s
June 6, 2023

Auto enrolment extended to under 22s

Auto enrolment extended to under 22s

by admin@rmiaccountancy.com / Monday, 13 March 2023 / Published in Pension

The Department for Work and Pensions (DWP) is supporting proposals to expand automatic pension enrolment to under 22s and low earners

A private members bill from MP Jonathan Gullis called for two extensions to automatic enrolment, abolishing the lower earnings limit for contributions and reducing the age for automatic enrolment from 22 to 18 years old.

The lower earnings limit would also be removed, meaning those with low earnings would start paying into their pension as soon as they start earning.

Under the current rules, employers have to pay pensions contributions once an employee has earned over £6,240 and up to £50,270 in a financial year. Anyone who does not want to join a pension scheme can opt out.

There are no details about when the automatic enrolment changes are likely to be introduced.

Jonathan Gullis, MP for Stoke-on-Trent, said: ‘Auto-enrolment of pensions will benefit scores of young people in all four corners of the country, which is why I am delighted that Laura Trott [minister] is supportive of the bill.

‘With all the evidence of the huge positive impact it can have, it is a no-brainer that we now need to extend auto-enrolment to those aged 18 and above.’

The proposals come following DWP research, which showed that 12.5 million people were not saving enough for retirement.

Laura Trott, minister for pensions, said: ‘We know that these widely supported measures will make a meaningful difference to people’s pension saving over the years ahead.

‘Doing this will see the government deliver on our commitment to help grow the economy and support the hard-working people of this country, particularly groups such as women, young people and lower earners who have historically found it harder to save for retirement.’

The expansion of automatic enrolment was proposed back in 2017 in a government review, but no action had been taken since then to implement those proposals.

Employees across the UK saved £114.6bn into their pensions under automatic enrolment, an increase of £32.9bn compared to 2012, when it was introduced.

The department will also continue its work by introducing products such as pensions dashboards, although this scheme was put on the backburner last week due to IT programming complexities. It is now unlikely to be launched before 2025. Pension providers were due to start uploading data to the system this September.

It is also offering mid-life MOTs to provide advice to people about how they can save for their retirement and also to encourage 50-plus year olds to return to the workplace.

Around 38% of working-aged adults (12.5m) are not putting enough money aside for their retirement.

The DWP noted that this figure was a ‘relatively large proportion’ of the UK, adding that the level of under-saving increased to 14.1m (43%) of people when the majority of an individual’s defined contribution (DC) pension is converted into an annuity.

Higher earners are more likely to be under saving relative to target replacement rates (TRR), with around 14% of those in the lowest earning band (less than £14,500) under saving compared to 55% in the top earnings band – more than £61,500 per year.

It also looked at the pensions and lifetime savings association’s (PLSA) moderate retirement living standard, which suggested a greater 51% of working people could be under-saving.

Retirees will also have to wait until they are 57 years old to claim their private pensions following a ruling that will the minimum pension age rise from 2028.

Currently, the minimum pension age is 55, although this will be increased to 57 years in 2028, meaning it will be significantly harder to retire early.

After 2028, the government plans to keep the minimum pension age around 10 years earlier than the state pension age. This would mean the minimum pension age could rise again to 58 by 2034.

0
  • Tweet

About admin@rmiaccountancy.com

What you can read next

State pension rises 2.5% as pension lock broken
Plans to consult on raising state pension retirement age

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Redundancy protection extended for parents

    Parents and unpaid carers are due to receive ne...
  • HMRC issues scam warning to tax credits claimants

    Tax credit claimants need to be on their guard ...
  • Late interest penalties hit 1.4m taxpayers

    More than 1.4 million taxpayers had to pay inte...
  • Landlord registration plan will drive HMRC investigations

    The launch of a landlord database outlined in t...
  • Airbnb owners will have to pay VAT on rentals across EU

    An overhaul of EU rules will affect Airbnb land...

Recent Comments

    Archives

    • May 2023
    • March 2023
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • December 2018
    • November 2018
    • January 2018
    • November 2015
    • August 2015

    Categories

    • Accounts
    • Annual Investment Allowance
    • Bounce back loan
    • Brexit
    • Budget
    • Budget 2021
    • Business grants
    • Business Rates
    • Business Support Finder Tool
    • Capital gains tax
    • Carer's Leave
    • Corporation Tax
    • Covid booster programme
    • Covid Restrictions
    • Eat Out to Help Out
    • Employment
    • Filing Deadlines
    • Flexible working
    • Fuel Rates
    • Furlough scheme
    • HMRC
    • Home Working Tax Relief
    • Inflation
    • Inheritance Tax
    • Interest Rates
    • IR35
    • Job Retention Scheme
    • Job Support Scheme
    • Kickstart Scheme
    • Making Tax Digital
    • Mobile
    • National Insurance
    • National Wage Rates
    • Networking
    • PAYE
    • Pension
    • Recovery Loan Scheme
    • Research & Development
    • Self Assessment
    • self employed scheme
    • Stamp Duty
    • Statutory Sick Pay (SSP)
    • Tax Credits
    • Tax Fraud
    • Tax Investigation
    • Tax Relief
    • Tax return
    • Technology
    • Uncategorized
    • VAT
    • Virtual Accountancy Services
    • Working Tax Credit

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Featured Posts

    • Redundancy protection extended for parents

      0 comments
    • HMRC issues scam warning to tax credits claimants

      0 comments
    • Late interest penalties hit 1.4m taxpayers

      0 comments
    • Landlord registration plan will drive HMRC investigations

      0 comments
    • Airbnb owners will have to pay VAT on rentals across EU

      0 comments

    GET A FREE QUOTE

    Please fill this for and we'll get back to you as soon as possible!

    FOOTER MENU

    • About us
    • Our Team
    • Forensic Accounting
    • Tax Planning
    • TV, Film, Sport and Media
    • Wealth Management
    • Case Studies
    • Advisory
    • Contact Us

    NEWSLETTER SIGNUP

    By subscribing to our mailing list you will always be update with the latest news from us.

    We never spam!

    GET IN TOUCH

    T (0161) 4137958
    Email: info@rmiaccountancy.com

    RMI Accountancy
    Blue Tower, Media City, Manchester, M50 2ST

    Open in Google Maps

    © 2019-2020. All rights reserved. Web Design - by Web & Print Media

    TOP
    Skip to toolbar
    • About WordPress
      • WordPress.org
      • Documentation
      • Support
      • Feedback
    • Log In