Sunday 22 April 2018

UK teens to be signed up for schemes

Workers in Ireland could as much as double their pensions under an auto-enrolment scheme. Stock image
Workers in Ireland could as much as double their pensions under an auto-enrolment scheme. Stock image

Victoria Shaw

Teenagers in the UK will be automatically enrolled in pensions, which will bring an extra 900,000 into schemes for the first time.

At present, automatic enrolment applies to workers who are aged between 22 and state pension age in Britain, and they must be earning above a certain amount.

But these criteria are set to be further opened up to include workers as young as 18, under plans by the Department for Work and Pensions (DWP) in the UK.

Double

Last week the Irish Independent revealed how the OECD found that workers in Ireland could as much as double their pensions under a similar auto-enrolment scheme.

However, it would not come for free - and a contribution worth 10pc of wages, split between an employee and employer, would be required from a young age, according to the think tank. The Government here has confirmed that a five-year pension reform plan will be rolled out in the near future, during which the fine detail of the proposed automatic enrolment scheme is due to be hammered out.

A spokesperson stressed that decisions on what the contribution requirements will be, and other key details, have yet to be made.

Irish Independent

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