Earnings trigger for automatic enrolment into a pension will remain at £10,000
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The annual earnings trigger for an employer to place someone into a workplace pension will remain frozen at £10,000 in 2025-26, the Government has confirmed.
In a written statement, pensions minister Torsten Bell said automatic enrolment thresholds for 2025-26 will be maintained at their 2024-25 levels.
The statement said: “It is important that AE (automatic enrolment) works for individuals, supporting those for whom it makes economic sense to save towards their pensions whilst also ensuring affordability for employers and taxpayers.”
While freezing the thresholds provides stability for both employers and employees, it is still a missed opportunity
Ian Futcher, Quilter
Mr Bell said the Government is committed to looking at long-term steps it can take to further improve pension outcomes.
Ian Futcher, a financial planner at wealth manager Quilter, said: “Torsten Bell has unsurprisingly decided to maintain the automatic enrolment thresholds given the upcoming changes to employer national insurance contributions and the continued financial strain many people are suffering.
“While freezing the thresholds provides stability for both employers and employees, it is still a missed opportunity to drive higher contributions that could secure better retirement outcomes for millions of workers.
“The Government’s decision puts the onus on individuals to ensure they’re saving enough for their future.
“While AE has transformed pension saving, those relying solely on minimum contributions may find themselves falling short of the retirement they desire.”
