Auto-enrolment Contribution Increase

westv

Why is this story seeing it as a bad thing? :mad:

https://www.bbc.co.uk/news/business-47269042

where_are_we

Yes! Very little mention of the 50% increase in employer`s contribution from 2% to 3%. The headlines will persuade some to stop contributions completely. In retirement I really appreciate my small occupational pension accumulated over 37 years.

molerat

the annual take-home pay of someone earning £15,000 will typically be £49 lower, if they pay contributions on their entire salary.

without mentioning that the rise in personal allowance will make them £130 better off so a net £81 better off.


Typical poor journalism headlining the small negative against the massive positive.

xylophone

without mentioning that the rise in personal allowance will make them £130 better off so a net £81 better off.

Well it does say



The hit to net pay could have been bigger, but a tax cut for most earners will soften the blow of higher auto-enrolment contributions.

The personal allowance is due to increase to £12,500 from April.

atush

westv wrote: »

Why is this story seeing it as a bad thing? :mad:

https://www.bbc.co.uk/news/business-47269042

Because they are going for sensational headlines?

cjv

I completely forgot about the pension contributions going up. Luckily the personal allowance and minimum wage hikes both benefit me, so no way am I going to give up the free money from my employer!