Kate Smith, Head of Pensions at Aegon believes that this signifies a small but much welcome pension boost commenting:
“We welcome the Government taking steps to put more money in the pockets of hard-working individuals and making work pay in what will no doubt be a welcome early Christmas present for many. From today, the cut in the universal credit taper from 63% to 55% along with a £500 increase in the Work Allowance means that 2 million of the UK’s lowest workers can keep up to an extra £1,000 of their earnings each year.
“In his recent Budget, the Chancellor tackled the spectra of the rising cost of living head on, by incentivising individuals to stay in work and encouraging them to look ahead to build a more financially secure future. More money in people’s pockets enables more low-earners to get into the pension savings habit through their workplace pension scheme. Saving even a little regularly, and benefiting from an employer pension contribution can help to build long-term financial security.
“From April, low-earners on the National Living Wage will also benefit from an increase in their hourly rate to £9.50 an hour more than double the increase in the cost of living. As a result of automatic enrolment, any rise in the minimum wage will also mean they benefit from increased pension contributions to their workplace pensions.”
