Source · Select Committees · Work and Pensions Committee
Recommendation 6
6
Deferred
Paragraph: 50
The middle of a cost of living crisis is not the time to ask people...
Recommendation
The middle of a cost of living crisis is not the time to ask people to pay more into their pension. However, if they are to do so in future, work to prepare the ground needs to start now to build consensus on the need for change among employers and the wider public. As a first step, the Government should say whether it considers an increase in minimum contributions possible in the foreseeable future. If not, it should explain how it intends to address the challenge of many people being on course for retirement incomes they will not think adequate.
Government Response Summary
The government is focused on economic stability and growth, and the next step for Automatic Enrolment is the implementation of the 2017 Review measures in the mid-2020s before looking at further changes. They are continuing to explore how to prompt savers to engage with their pensions.
Paragraph Reference:
50
Government Response
Deferred
HM Government
Deferred
As part of its priorities, the government is focused on economic stability and growth, which supports higher wage levels and opportunity for increased retirement saving in future. Recognising the current economic context, however, we have been clear that the next step for Automatic Enrolment is the implementation of the 2017 Review measures in the mid-2020s. Current statutory contributions of 8% on a band of earnings are unlikely to give all individuals the retirement to which they aspire. That is why, we remain committed to implementing the Review measures, as a first step, to improve workplace pension coverage and savings levels. Taken together these measures support our policy goal of enabling low to medium earners to save more for their retirement. This remains our priority before looking at further changes. Alongside this we are continuing to explore how we can prompt savers to engage with their pensions, through tools such as the pensions dashboard and the introduction of the Simpler Annual Benefits Statement, which will help individuals plan appropriately for later life.