Increased AE contributions may have 'short-term pain' but long-term gain

Research finds increases would boost UK investment but result in reduction in wages

Martin Richmond
clock • 4 min read
Increased AE contributions may have 'short-term pain' but long-term gain

Increased pension contributions under the expansion of auto-enrolment (AE) will have broadly positive economic impacts over the long-term but will have adverse short-term impacts on employees’ wages, research from Royal London has found.

The research, Exploring the implications of higher pension contributions in the UK, commissioned by Royal London and conducted by Oxford Economics, found only two-fifths of households with an indiv...

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

More on Defined Contribution

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
DCIF highlights 'growing tension' between economic ambitions and schemes' fiduciary duty

DCIF highlights 'growing tension' between economic ambitions and schemes' fiduciary duty

Report sets out opportunities for DC schemes to contribute to UK growth while delivering strong outcomes for savers

Holly Roach
clock 11 June 2025 • 3 min read
The evolution of DC investments

The evolution of DC investments

How defined contribution schemes are investing in private markets.

Jonathan Stapleton
clock 11 June 2025 • 15 min read
Trustpilot