TISA comments on Robert Holden MP’s motion to lower the age of, and abolish the lower earnings limit on, pensions automatic enrolment
Renny Biggins, head of retirement at TISA, commented on Robert Holden MP’s motion to lower the age of, and abolish the lower earnings limit on, pensions automatic enrolment:
“Robert Holden MP’s intervention to lower the age of automatic enrolment is a vital one for employees across the country. One of TISA’s high-level ongoing objectives in retirement policy is to expand the scope of automatic enrolment to ensure it remains relevant to a constantly changing backdrop of working patterns, tax, and wealth.
“In the course of our work, we have conducted detailed research to determine the best possible policy changes on automatic enrolment in terms of consumer outcomes. These align with Robert Holden MP’s proposals, and we fully support his efforts to:
1. Implement the 2017 automatic enrolment review proposals to lower the minimum age for participation in AE to 18
2. Implement the 2017 automatic enrolment review proposals to remove the lower earnings limit
“The COVID-19 pandemic has had a significant impact on employer and employee finances. We believe these proposals should be placed in legislation no later than 2022 and be implemented no later than 2025. This recognises the significant impact that COVID-19 has had on employee and employer finances and allows time for employers and employees to prepare for theses changes, while providing the crucial certainty that they will be brought into legislation.
“At TISA, we also fully support a review of the earnings trigger of £10,000. Given the recent surge in part-time working, this will bring retirement policy more into line with the new employment landscape and ensure automatic enrolment can deliver on its intentions for the majority of UK employees.”