Pensions - Articles - AE compliance encouraging but more to be done


Commenting on The Pension Regulator’s fourth annual commentary and analysis published today, Morten Nilsson CEO of NOW: Pensions said: “TPR’s latest report is encouraging reading. Auto enrolment is working and, for the most part, employers are aware of their duties and appear to be taking action.

 But, there will always be time lag in TPR’s data as employers have five months from their staging date to complete their declaration of compliance.
 
 Smaller firms are likely to pose more of a challenge and already we’re seeing an increase in the number of firms coming to us late, or after their staging date has passed. In Q2, 40% completed their application either very close to their staging date or after their deadline had already passed - the highest percentage over the recorded quarters.
 
 To safeguard the long term success of the policy, contribution levels need to be urgently addressed. The 2017 review of auto enrolment presents the perfect opportunity for the government to set a clear path for increasing minimum contributions, to make sure auto enrolled savers have decent sized pension pots when they retire.
 
 As a first step, by removing ‘qualifying earnings’* from the auto enrolment calculation, the government could significantly improve outcomes for savers. There’s a widespread assumption that auto enrolment contributions are on every pound of earnings but in most cases this isn’t true.
 
 Qualifying earnings is frequently overlooked but has a corrosive effect pension pots which has long term consequences for savers.”
  

Back to Index


Similar News to this Story

Footsie flies higher as oil prices ease
The Footsie climbs in early trade as oil prices ease, offering some respite after a volatile week, although Brent still hovers around $103 a barrel. F
SPP backs 3.25% GMP rate but says end routine consultations
The Society of Pension Professionals (SPP) has backed the Government’s proposed 3.25% fixed rate for Guaranteed Minimum Pension (GMP) revaluation from
DC survey shows adequacy blind spot as VfM regime approaches
Aon has announced findings from its 2026 Defined Contribution Pension and Financial Wellbeing Survey – ‘Balancing the Value Equation’ suggest that man

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.