Auto Enrolment To Include 18-Year-Olds

18 December 2017

Auto Enrolment To Include 18-Year-Olds The government have revealed new plans to reduce the minimum age for auto enrolment to 18 by the mid-2020s.

Under the current regulations, employers must only auto enrol eligible staff over the age of 22 and are earning more than £10,000. The reduction in age will affect approximately 900,000 young people.

David Gauke, Secretary of State for Work and Pensions, said:

"We are committed to enabling more people to save while they are working so that they can enjoy greater financial security when they retire."

"We know the world of work is changing, so it is only right that pension saving does too. This ambitious package will see more people than ever before helped onto the path towards building a secure retirement."

Graham Vidler, director of external affairs at the Pensions and Lifetime Savings Association (PLSA), welcomed the announcement but added that he hoped contribution levels would rise too.

"The PLSA has long argued that automatic enrolment should cover more people and that contributions should rise, ideally to 12 percent over the next decade."

"The new measures plus the commitment to review contributions after 2019 marks real progress, and we look forward to supporting the Government in implementing the policy."

Sir Steve Webb, the former pensions minister who was in office when auto enrolment was first rolled-out was positive about the changes but was critical of the proposed pace of change.

"There are some great ideas in this review, including starting pension saving at age 18 and making sure that every pound that you earn is pensionable. But the proposed pace of change is shockingly lethargic. Talking about having reforms in place by the mid-2020s risks leaving a whole generation of workers behind."

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      Chris was Head of Mass Markets at Smart Pension. Chris served as Smart Pension's Head of Mass Markets from June 2016 to September 20…