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

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

More on Defined Contribution

Partner Insight: Should pension education become as routine as health and safety training?

Partner Insight: Should pension education become as routine as health and safety training?

L&G's Building Future You workplace pilot explores whether retirement adequacy can be supported by treating pension education as a workplace responsibility.

L&G
clock 23 October 2026 • 4 min read
Nest surpasses £2bn in commitments to HarbourVest PE strategy

Nest surpasses £2bn in commitments to HarbourVest PE strategy

Milestone comes as IFM Investors agrees to buy majority stake in ABP

Jonathan Stapleton
clock 21 October 2026 • 3 min read
Mansion House Accord private capital allocations rise to 6.6% of DC assets

Mansion House Accord private capital allocations rise to 6.6% of DC assets

Industry says momentum dependent on pipeline; private capital firms lament current level of compact progress as ‘disappointing’

Jonathan Stapleton
clock 21 October 2026 • 5 min read
Trustpilot