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

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Defined Contribution

DC trustees and market volatility: Why now is the time to act

DC trustees and market volatility: Why now is the time to act

William Gold says DC trustees feeling the strain should proactively explore their options

William Gold
clock 23 June 2025 • 3 min read
Accessing private markets investments in DC

Accessing private markets investments in DC

Best practices for structuring private market solutions for DC

Jonathan Stapleton
clock 23 June 2025 • 14 min read
IFS: Rates of projected adequacy often higher for those on lower levels of earnings

IFS: Rates of projected adequacy often higher for those on lower levels of earnings

PP conference delegates hear DC savers still face wide ranging challenges while ‘knowledge is generally low’

Martin Richmond
clock 18 June 2025 • 3 min read
Trustpilot