Auto enrollment increase

I know that there is a separate section for auto enrollment but that seems to be a bit dead.
Everyone I talk to seems totally unaware that employee contributions are about to treble in April.
Also employer contributions will double

Although this is a good thing, it may come as a shock to short term budgets so I am just trying to raise awareness of this happening
No.79 save £12k in 2020. Total end May £11610
Annual target £24000

Comments

  • dunstonh
    dunstonh Posts: 116,031
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    I know that there is a separate section for auto enrollment but that seems to be a bit dead.

    The board admin have had requests several times to delete that section as barely anyone reads it. So, you did the right thing. posting here.
    Everyone I talk to seems totally unaware that employee contributions are about to treble in April.
    Also employer contributions will double

    Still short of where they need to be but the stepped method was seen as a way to reduce people opting out to begin with.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Paul_Herring
    Paul_Herring Posts: 7,481
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    employee contributions are about to treble in April.

    Three times a small number, isn't really a much bigger number...
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • runninglea
    runninglea Posts: 907
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    Does an employer have to write/ tell employees that it is increasing.

    I know its only a small amount but suddenly to have 3 times what has been the normal for the last couple of years, could be too much for some people.
    Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
    .1%) (42/100) payments made. Total paid 2019 year £1,700

    Total paid 2017 year £15,300Total paid 2018 year £13,600
  • WobblyDog
    WobblyDog Posts: 512
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    It has been causing a bit of consternation in my workplace. A few unfortunate people have found that they can no longer make pension contributions via salary sacrifice, because the compulsory larger employee contributions take them below minimum wage.
  • Mnd
    Mnd Posts: 1,699
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    That was why I originally posted. Nobody at my wife's office knew about it, she raised it with her firm who also were in the dark, they have sent a e mail round now
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • runninglea
    runninglea Posts: 907
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    Mnd wrote: »
    That was why I originally posted. Nobody at my wife's office knew about it, she raised it with her firm who also were in the dark, they have sent a e mail round now

    Is everyone at her firm staying in?
    Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
    .1%) (42/100) payments made. Total paid 2019 year £1,700

    Total paid 2017 year £15,300Total paid 2018 year £13,600
  • Mnd
    Mnd Posts: 1,699
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    I don't know, they only found out about it yesterday, mind if my wife is their pension advisor then they need help! She says they don't understand and will only notice when they get paid
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • runninglea
    runninglea Posts: 907
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    We haven't been told anything yet - I thought they would at least send a letter or note in wages!
    Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
    .1%) (42/100) payments made. Total paid 2019 year £1,700

    Total paid 2017 year £15,300Total paid 2018 year £13,600
  • John-K_3
    John-K_3 Posts: 681 Forumite
    I got an email recently telling me that the firm will. Ump up my own contribution to 5%. I am not allowed to pay 5% in, so I hope that they don!!!8217;t.
  • Paul_Herring
    Paul_Herring Posts: 7,481
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    John-K wrote: »
    I got an email recently telling me that the firm will. Ump up my own contribution to 5%. I am not allowed to pay 5% in, so I hope that they don!!!8217;t.

    The total minimum amount is going up to 5%, but it consists of 2% from your employer and 3% from you - are you sure you've read the email correctly? (Or are you similarly affected by the salary sacrifice problem mentioned above?)

    http://www.thepensionsregulator.gov.uk/en/employers/phasing-increase-of-automatic-enrolment-contribution

    cf4LLnA.png
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
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