Auto enrolment extended to under 22s

The Department for Work and Pensions (DWP) is supporting proposals to expand automatic pension enrolment to under 22s and low earners

A private members bill from MP Jonathan Gullis called for two extensions to automatic enrolment, abolishing the lower earnings limit for contributions and reducing the age for automatic enrolment from 22 to 18 years old.

The lower earnings limit would also be removed, meaning those with low earnings would start paying into their pension as soon as they start earning.

Under the current rules, employers have to pay pensions contributions once an employee has earned over £6,240 and up to £50,270 in a financial year. Anyone who does not want to join a pension scheme can opt out.

There are no details about when the automatic enrolment changes are likely to be introduced.

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