Rollout of auto enrolled pensions for under-22s likely in 2025

hl.co.uk:

We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Newsroom

Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.

HL Podcast

HL Insight

Big reforms to the UK pension system, expected to boost the retirement pots of young workers by tens of thousands of pounds, may not be implemented until 2025, warn experts.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

22 Sep 2023

Young adults joining the workforce at 18 years old were identified as the biggest winners from changes enacted by the UK government this week.

Under the reforms, the age at which employers are obliged to enrol eligible workers automatically into a company pension will reduce from 22 to 18.

In addition, under the changes, minimum pension contributions from both employers and employees will gradually increase to 8 per cent of earnings from the first £1 of salary, rather than being based on 8 per cent of earnings over £6,240 per year, as is the case today.

Industry experts say 18-year-olds will be “double winners” from the reforms.

“[Over their working lives] they could gain £105,300 from the removal of the offset (£6,240), and a further £44,700 from being automatically entitled to an extra four years of pension contributions and investment growth,” said Steven