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Auto-enrolment eligibility may be expanded

Posted on: 13/10/2017

The Government’s review of auto-enrolment (AE) is anticipated to reduce the minimum qualifying age for eligible workers from age 22 to age 16.

Since the introduction of AE in 2012 the number of people contributing into a company pension scheme has almost doubled to approximately 13.5 million (as at 2016). The Government is now considering reducing the qualifying age to include employees between 16 and 22 years old in a further drive to increase the number of individuals who automatically qualify for inclusion in company sponsored arrangements.

The upper age limit, which is currently set at an individual’s State Pension Age, is also being considered in response to the continued trend for UK workers to stay employed past this date.

The review concludes later this year.