Changes to Automatic Enrolment Pensions

Changes are on the way that will see a more younger employees automatically enrolled into their employers pension scheme.

In late 2023, the new Pensions (Extension of Automatic Enrolment) Act 2023 was introduced that will implement two major changes:

First off, the lower earnings limit will be removed, meaning that employees will no longer have to meet the £192 per week/£833 a month threshold. Secondly, the age for automatic enrolment is being lowered from 22 to 18.

This will have a big impact for employers with younger members of staff, so while there’s no immediate change (as no date for these changes has currently been confirmed), it’s worth employers being aware for their longer term financial planning.