AE contributions to eat a fifth of disposable income from 2019

James Phillips
clock • 2 min read

The rise in auto-enrolment (AE) contributions over the next 13 months will have a "severe impact" on the average worker's disposable income, according to independent analysis.

The increase in total contributions from 2% to 5% next month and from 5% to 8% in April 2019 will see a surge in pension costs as a proportion of disposable income, especially if employers only con...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Defined Contribution

Urging pension funds to act patriotically has become politically plausible

Urging pension funds to act patriotically has become politically plausible

Backstop plans to mandate private asset investment has global precedent

Gregg McClymont
clock 13 May 2025 • 5 min read
How pension providers are tackling the private markets challenge

How pension providers are tackling the private markets challenge

There is investment in a wide range of private market assets through a variety of structures

Jonathan Stapleton
clock 12 May 2025 • 17 min read
Decumulation solutions need tailored approach amid varying pensioner spending habits, report says

Decumulation solutions need tailored approach amid varying pensioner spending habits, report says

Research finds retirees who own their homes tend to ‘frontload’ their retirement spending

Martin Richmond
clock 08 May 2025 • 6 min read
Trustpilot