News

State Pension Review, Earnings Thresholds and Extension of the Automatic Enrolment Scheme

Written by HR Connect | Sep 8, 2023 2:13:00 PM

State Pension Review

The State Pension Age will rise to 67 by the end of 2028.

• State Pension age rise to 67 will take place between 2026-2028

• There will be a review within two years of next parliament to reconsider rise to age 68

• Delivers on Government responsibility to ensure State Pension remains sustainable and fair across the generations

Earnings Thresholds

The Department for Work and Pensions (DWP) reviews the earnings thresholds for automatic enrolment into a workplace pension scheme every year. The changes in threshold took effect from 6 April 2023. As you can see from the table below, the thresholds announced by the DWP are frozen for 2023/2024 tax year.

Extension of Automatic Enrolment scheme

The Government is supporting the proposal to expand Automatic Enrolment, enabling millions more people to save more via a pension scheme, and to start saving earlier. –

• Abolishing the Lower Earnings Limit for contributions, this will enable people to save from the first pound of earnings

• Reducing the age for being automatically enrolled from 22 to 18 years old

The timing on these changes has not yet been finalised.