Source · Select Committees · Work and Pensions Committee
Recommendation 7
7
Deferred
Paragraph: 54
In addition to any increase in the statutory minimum, we have been persuaded that there...
Recommendation
In addition to any increase in the statutory minimum, we have been persuaded that there is scope to expand the use of targeted ways to improve outcomes or increase contributions. We recommend the Government commit to a trial of auto-escalation schemes, such as Save More Tomorrow (where people commit in advance to paying part of future salary increases into their pension), with a view to understanding how the use of such schemes might be extended to a wider range of savers and employers.
Government Response Summary
The government is focused on economic stability and growth, and will implement the 2017 Review measures in the mid-2020s as the next step for Automatic Enrolment before looking at further changes like auto-escalation schemes.
Paragraph Reference:
54
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.