Stuart Price, Partner and Actuary at independent financial services consultancy Quantum Advisory, is calling for the £10,000 minimum wage cap for auto-enrolment to be scrapped.
A recent Scottish Widows Retirement Report has suggested those with multiple jobs are missing out on £90million of employer pension contributions because they don’t meet the minimum wage threshold. Currently, only those earning more than £10,000 per year in a single job are automatically enrolled, excluding nearly 2million ‘multi-jobbers’ whose income is split.
Stuart Price, Partner and Actuary at independent financial services consultancy Quantum Advisory, is calling for the £10,000 cap to be scrapped so that all workers from the age of 18 to State Pension Age would be included. Stuart says:
“When auto enrolment was reviewed at the end of 2017, one of the outcomes was for the net to be widened so that 18-year olds will be included from the mid 2020’s.
While this is a step in the right direction, I believe the government should have also removed the minimum wage requirement. As well as ensuring many more would be saving for their retirement provision – which would overcome this multiple job issue – it would also make the auto enrolment administration process easier for employers and pension providers. A simplified system could also mean a reduction in the charges passed on to members.”
Established in 2000, Quantum Advisory provides pension and employee benefits services to employers, scheme trustees and members and has offices in Amersham, Birmingham, Bristol, Cardiff and London. For more information about Quantum Advisory, please visit: www.quantumadvisory.co.uk