Millions of British workers will see their automatic pension contributions increase from April this year.
Automatic enrolment is a mandatory government scheme which aims to get more workers to save into pensions. The scheme has been slowly phased in over the last few years, giving smaller businesses time to prepare for the financial increase. From April, both employers and employees will see an increase in the amount they must contribute towards their pensions each month.
Contributions Percentage Increase
At present, employers must contribute 1% of an employee’s salary to a pension, with the employee saving at least 1%, unless they choose to opt out of a pension scheme. As of April 6th however, these minimum amounts will rise to 2% for employers and 3% for employees. There are worries about whether or not workers will have enough pension savings to see them through retirement, and this increase should go some way to easing financial struggles for future retirees.
Taking Control of Your Pension
If you are curious or concerned about how your defined contribution pension is performing, there are ways you can take control of how your pension is invested. The Telegraph have listed a number of ways you can engage with and amend your pension scheme. If you would like more information on your pension, we offer a number of retirement services available, designed to help you make the most out of your retirement savings. Please get in touch for more information.