Kate Smith, Head of Pensions at Aegon, has expressed her deep disappointment in the delay in the implementation of the 2017 reforms to auto-enrolment, announced at the Pensions Age Spring Conference today, commenting:
“I’m deeply disappointed that the Pensions Minister has confirmed that 2017 reforms of auto-enrolment implementation consultation will be delayed to the mid or late 2020s.
“We have been expecting this consultation for over six months now, ever since the Pensions Act enabling these reforms, passed back in September 2023. Once implemented, this will widen the scope of auto-enrolment by lowering the minimum age from 22 to 18 and removing the salary offset so pension contributions are made from the first pound, once the reforms are implemented.
“This is bad news for pension savers, particularly low earners, who are disproportionately women. As time marches on, and with an election looming, it could be over 10 years on from the 2017 review before changes start to be implemented, with potentially millions of employees losing out on higher pension contributions and facing poorer retirement income outcomes.”
