The Institute of Fiscal Studies (IFS) conducted auto enrolment research on employees working for small employers (2-29 employees) and has published their findings in the report – The effect of automatic enrolment on employees working for small employers.
The report finds that automatic enrolment substantially increased workplace pension participation among those working for small employers by around 45% to reach 70% of targeted employees – with most, but not all, brought in at relatively low rates of pension saving. This is compared to the participation in largest employers that is around 90%, far higher. The IFS find that this lower participation rate is not explained either by differences in the observed characteristics of workers between smaller and larger employers, or by differences in the pension contributions offered by employers.
Alongside this report the IFS also published some commentary on the findings. This commentary summarises new evidence on the impact automatic enrolment had as it was extended to affect smaller employers. This is important as over a quarter of private sector employees in the UK work for an employer who has fewer than 50 employees and prior to automatic enrolment (in 2012) just one-in-six of these employees were saving for retirement in a workplace pension.
Articles on this website are offered only for general informational and educational purposes. They are not offered as and do not constitute financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional. Capital is at risk; investments and the income from them can fall as well as rise.
You are now departing from the regulatory site of Finura. Finura is not responsible for the accuracy of the information contained within the linked site.
As tax year end approaches, there is still time to make use of your available reliefs and allowances.
This tax year end planning checklist covers the main planning opportunities available to UK resident individuals and will hopefully help to inspire action to reduce tax for the 2023/24 tax year and to plan ahead for 2024/25.
As tax rate band thresholds are changing, understanding the impact on high rate taxpayers and the economy is crucial.
It was recently revealed in the media that the amount we need to enjoy a ‘moderate’ retirement has increased by £8,000 per annum, a 38% increase, in just one year.