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UK pensions: research backs higher employer/employee auto-enrolment contributions to close savings gap; warns of distributional impacts; aligns with Mansion House aims; government not increasing statutory minima now.

Published on: 09 February 2024

Published by a Law360 reporter
Legal News
Article summary

Royal London

On 7 February 2024, Royal London reported that research it had asked Oxford Economics to undertake found that raising contributions by either employers or staff would bolster retirement outcomes for large numbers of Britons. The insurer noted that prospects have been lifted by recent measures such as automatic enrolment. Under this system, employees are put into a scheme by default, and monthly pension payments are set at a floor of 8% of pay—5% from workers and 3% from employers. Jamie Jenkins, Royal London’s director of policy, called the policy a “huge success” that has reversed the decline in workplace pension saving. However, he cautioned that it remains unfinished business, as current contribution levels will still leave many unable to afford the standard of living they hope for in retirement, Jenkins said...

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