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Freeze auto-enrolment thresholds to boost pensions saving

Posted by Alan Roe
Alan Roe
Alan has been advising individuals and corporate entities for over 15 years, bot
User is currently offline
on Tuesday, 14 February 2012
in Pension Planning and Advice

The TUC has urged the government to freeze the lower thresholds in the auto-enrolment regime - keeping the bottom of the earnings band on which contributions have to be paid (£5,564) and the earnings level at which auto-enrolment is triggered (£7,475) - at their current levels.

The government is set to introduce a new earnings trigger for auto-enrolment, following their review, which recommended that workers should only be auto-enrolled once their earnings rose above the income tax threshold (£7,475). They would still pay contributions from the bottom of the earnings band.

However, the TUC argues that women would be the main losers from the new earnings trigger as the vast majority of workers with pay between the lower limit of the earnings band and the income tax threshold are women working part-time. The auto-enrolment trigger should therefore be frozen, says the TUC.

The TUC believes that linking auto-enrolment with the income tax threshold is particularly damaging given the coalition plans to increase it to £10,000.

A TUC analysis of official earnings data shows that the new earnings trigger could eventually stop around two million women from being auto-enrolled into pensions.

Alan has been advising individuals and corporate entities for over 15 years, both in the UK and overseas. He set up Warde Graham in 2003 after a successful career in wealth management.



Working closely with clients, Alan puts together holistic financial planning solutions taking time to understand clients’ business, individual and family needs. Many clients are referred by solicitors where tailored advice is a priority, to mitigate inheritance tax and plan for long term care provision. Alan has a strong knowledge and expertise of the full range of Trusts, advising both families and individuals, while keeping up to date with the ever changing legislation.



Alan has three children and is a keen sportsman with an interest in golf, curling and hill walking - the latter to relax from the frustrations of the others.
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