Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • December 2013
12

DWP raises auto-enrolment earnings threshold to £10k

Open-access content Wednesday 18th December 2013 — updated 5.13pm, Wednesday 29th April 2020

From April next year workers earning £10,000 or more will be automatically enrolled into their company pension scheme, the Department for Work and Pensions has revealed

It is a rise from the £9,440 earnings trigger, but will mean that around 170,000 fewer workers will be eligible for automatic enrolment - 120,000 of these are thought to be women.

But the DWP said these workers would still be able to 'opt-in' and will receive an employer contribution as long as they earn above the lower limit of the qualifying earnings band. 

A DWP spokesperson said: 'It's worth remembering people earning over £5,700 can opt into a pension scheme if they wish, and receive an employer contribution.

'For individuals earning under £10,000, the benefit of directing current income into pension saving may not be of benefit when the new Single Tier State Pension will already provide them with an income in retirement similar to that in working life.

'Under automatic enrolment millions of low paid workers will have the chance to save in a workplace pension for first time, and receive a contribution from their employer.'

But Tom McPhail, head of pension's research at Hargreaves Lansdown, warned: 'There is an increasing risk that failure could yet be snatched from the jaws of success. Millions of workers are being excluded from the enrolment process and many of those who are being put into a pension won't be saving enough. Auto-enrolment has not eliminated the need to communicate effectively with all employees and to engage them in planning for retirement.'

He said that the government was increasingly in danger of making the same mistake as the previous government did on stakeholder pensions in 2001, by assuming that low cost is a guarantee of a successful outcome. 

'[The government] can have all the price caps and defined ambition ideas [it] like[s] but if [it doesn't] get people to spend less and save more it will all be a waste of time.'

This article appeared in our December 2013 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Public back collective pensions model, IPPR finds

‘Dutch-style’ collective pensions have emerged as a most popular option with the British public for retirement saving, a think-tank said today.
Wednesday 18th December 2013
Open-access content

London local government pensions funds to merge assets

All 33 local authorities in London have agreed a plan to merge £20bn of pension fund assets into a singe investment vehicle in a bid to cut costs and improve investment returns
Wednesday 18th December 2013
Open-access content

Mercer backs 'comply or explain' approach to DC pension charges

Mercer has backed a ‘comply or explain’ approach to annual management charges, warning that fee caps risk putting more innovative products out of reach.
Tuesday 17th December 2013
Open-access content

Auto-enrolment numbers pass 2 million mark

More than two million workers have been auto-enrolled into a workplace pension scheme, according to latest monthly figures from The Pensions Regulator.
Monday 16th December 2013
Open-access content

Pension funds urged to take action in 2014 to de-risk

Actuaries Towers Watson has urged defined benefit pension scheme sponsors and trustees to consider a host of de-risking options to ensure that they are protected in future economic downturns
Friday 20th December 2013
Open-access content

Mercer highlights pension trustees lack of skills and knowledge

Skills and knowledge gaps are affecting pension trustees’ ability to make confident investment decisions, Mercer’s 2013 pensions governance survey has revealed
Friday 13th December 2013
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from December 2013

ta

Trustees urged to complete TPR toolkit

Pension scheme trustees have been urged to bring themselves up to speed with key retirement policies and legal developments by completing new modules in The Pension Regulator's trustee toolkit.
Thursday 31st July 2014
Open-access content

Driverless cars 'require new insurance approach'

There needs to be a fresh approach to motor insurance if driverless cars are to become a feature of the UK road landscape, a senior industry leader has claimed.
Wednesday 30th July 2014
Open-access content

Annuity sales 'down 44% over the year'

There was a 44% drop in annuity sales in June when compared to the same month last year, according to research by financial systems provider IRESS.
Wednesday 30th July 2014
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from 12

ta

Trustees urged to complete TPR toolkit

Pension scheme trustees have been urged to bring themselves up to speed with key retirement policies and legal developments by completing new modules in The Pension Regulator's trustee toolkit.
Thursday 31st July 2014
Open-access content

Driverless cars 'require new insurance approach'

There needs to be a fresh approach to motor insurance if driverless cars are to become a feature of the UK road landscape, a senior industry leader has claimed.
Wednesday 30th July 2014
Open-access content

Annuity sales 'down 44% over the year'

There was a 44% drop in annuity sales in June when compared to the same month last year, according to research by financial systems provider IRESS.
Wednesday 30th July 2014
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Leading Insurer/Asset Manager – Pricing Actuary (Mortgages)

London (Greater)
Competitive
Reference
148750

Senior Consultant - Risk Settlement - Any UK Location - Up to £100,000 plus bonus

London / Manchester / Edinburgh / Remote
Up to £100,000 + Bonus
Reference
148832

Finance Transformation Actuarial student/Qualified Actuary

London (Central)
£50,000 - £75,000 depending on experience
Reference
148830
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ