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  • FIRST POST
    • Mnd
    • By Mnd 7th Mar 18, 3:18 PM
    • 503Posts
    • 607Thanks
    Mnd
    Auto enrollment increase
    • #1
    • 7th Mar 18, 3:18 PM
    Auto enrollment increase 7th Mar 18 at 3:18 PM
    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
Page 1
    • dunstonh
    • By dunstonh 7th Mar 18, 3:53 PM
    • 92,634 Posts
    • 59,949 Thanks
    dunstonh
    • #2
    • 7th Mar 18, 3:53 PM
    • #2
    • 7th Mar 18, 3:53 PM
    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). Comments are for discussion purposes only. They are not financial advice. 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
    • By Paul_Herring 7th Mar 18, 4:07 PM
    • 6,284 Posts
    • 2,997 Thanks
    Paul_Herring
    • #3
    • 7th Mar 18, 4:07 PM
    • #3
    • 7th Mar 18, 4:07 PM
    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
    • By runninglea 7th Mar 18, 6:55 PM
    • 857 Posts
    • 1,269 Thanks
    runninglea
    • #4
    • 7th Mar 18, 6:55 PM
    • #4
    • 7th Mar 18, 6:55 PM
    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 2018 (6,800/17000mortgage repayment)Overall mortgage (62,100/165568) (37
    .6%) (34/100) payments made. Total paid 2018 year 6,800

    Total paid 2017 year 15,300Total paid 2018 year 6,800
    • WobblyDog
    • By WobblyDog 7th Mar 18, 8:06 PM
    • 463 Posts
    • 292 Thanks
    WobblyDog
    • #5
    • 7th Mar 18, 8:06 PM
    • #5
    • 7th Mar 18, 8:06 PM
    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
    • By Mnd 7th Mar 18, 8:50 PM
    • 503 Posts
    • 607 Thanks
    Mnd
    • #6
    • 7th Mar 18, 8:50 PM
    • #6
    • 7th Mar 18, 8:50 PM
    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
    • runninglea
    • By runninglea 7th Mar 18, 9:17 PM
    • 857 Posts
    • 1,269 Thanks
    runninglea
    • #7
    • 7th Mar 18, 9:17 PM
    • #7
    • 7th Mar 18, 9:17 PM
    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
    Originally posted by Mnd
    Is everyone at her firm staying in?
    Year 2018 (6,800/17000mortgage repayment)Overall mortgage (62,100/165568) (37
    .6%) (34/100) payments made. Total paid 2018 year 6,800

    Total paid 2017 year 15,300Total paid 2018 year 6,800
    • Mnd
    • By Mnd 7th Mar 18, 9:29 PM
    • 503 Posts
    • 607 Thanks
    Mnd
    • #8
    • 7th Mar 18, 9:29 PM
    • #8
    • 7th Mar 18, 9:29 PM
    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
    • runninglea
    • By runninglea 7th Mar 18, 9:34 PM
    • 857 Posts
    • 1,269 Thanks
    runninglea
    • #9
    • 7th Mar 18, 9:34 PM
    • #9
    • 7th Mar 18, 9:34 PM
    We haven't been told anything yet - I thought they would at least send a letter or note in wages!
    Year 2018 (6,800/17000mortgage repayment)Overall mortgage (62,100/165568) (37
    .6%) (34/100) payments made. Total paid 2018 year 6,800

    Total paid 2017 year 15,300Total paid 2018 year 6,800
    • John-K
    • By John-K 7th Mar 18, 11:14 PM
    • 654 Posts
    • 1,011 Thanks
    John-K
    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
    • By Paul_Herring 8th Mar 18, 7:29 AM
    • 6,284 Posts
    • 2,997 Thanks
    Paul_Herring
    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.
    Originally posted by John-K
    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

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