Auto enrolment age to be lowered

By Paul
In January 15, 2018
Comments off

The qualifying age for automatic enrolment into an employer’s pension scheme is currently 22 years, but a new proposal plans to reduce the age to 18 by the mid 2020s.

The change will affect about 900,000 young people and will encourage higher savings in preparation for the younger generation’s retirement. The aim is to create a “habit” of saving that will stay with individuals throughout their working life.

But is the mid 2020s soon enough? This risks leaving a whole group of young people behind when it comes to pensionable savings and there have been calls to bring this new proposal forward. I think the original struggle and disorganisation of auto enrolment has meant that those in charge want to be fully prepared for any further changes to the scheme.

Whilst there are positives to this move, if you are a business owner it will mean an increase in pension costs, as it did when the auto enrolment scheme was introduced originally. Something to keep in mind over the coming years.

Comments are closed.


Redwood Financial Family Wealth & Estate Planners Ltd is Directly Authorised and regulated by the Financial Conduct Authority. FRN number 774469.

Subscribe to our free monthly Wealth Management update.


The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

Contact us

Telephone: 01489 877547

Company information

Redwood Financial Family Wealth and Estate Planners Ltd Company Number: 08926661
Registered Office Address: Wellesley House, 204 London Road, Waterlooville, Hampshire,