Category: Contributions

When the default becomes the norm

May 27, 2026

Adequacy, Automatic enrolment, Behavioural economics, Contributions, Defined Contribution, Pensions Commission, Private pensions

The Turner Commission’s design for auto-enrolment drew on US research showing that inertia could be used to keep people enrolled in pension schemes, and they were right; AE opt-out rates stayed below 10%. The same research showed that defaults can anchor savers at minimum contribution rates. The Commission proposed a minimum of 8% of band…
We’ve frozen AE threshold levels, what’s next for increasing contributions?

January 24, 2025

Adequacy, Automatic enrolment, Contributions, Defined Contribution, Ethnicity, Gender, Income, Labour market, Pensions gap, Private pensions, Retirement

The DWP has announced that the automatic enrolment Earnings Trigger and Qualifying Earnings Band will stay the same in 2025/26 as it was in 2024/25. These affect eligibility and contribution levels and mean that: This means that as earnings increase, more people will be eligible for automatic enrolment, and people will receive and pay more…