Commenting on the Government’s Automatic Enrolment Review, Andrew Drake, Director, JLT Employee Benefits, said: “The desire to simplify the mechanics of Automatic Enrolment (AE) for employers is likely to be negated somewhat by the inclusion of under 22 year olds. Younger workers are typically more prone to fluctuating earnings, lower wages and higher levels of debt than more established workers. This group has yet to settle in employment and they are likely to accumulate a number of very small pension pots during this period. It also puts more pressure on assessment systems as well as smaller businesses that tend to operate more manual systems and process for AE.
“The removal of the lower earnings limit, coupled with the statutory contribution increases, should take us closer to adequacy, but we will still be a long way off the ideal retirement system. We are likely to have a clearer view of the tolerance that the UK workforce has to the legislation by 2020, by which time we will be able to see the impact of the increases, or even compulsion. As contribution levels rise, and pot sizes increase, we should look to the sound stewardship of these new savings schemes. The debate should now move from levels of contributions, to investment governance, education and value for money.”
JLT Employee Benefits
PR Manager, JLT Group
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NOTES TO EDITORS:
About Jardine Lloyd Thompson
Jardine Lloyd Thompson is one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT’s client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 41 countries with more than 10,600 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
For further information about JLT, please visit our website www.jlt.com.
About JLT Employee Benefits
JLT Employee Benefits is one of the UK’s leading employee benefit providers offering a wide range of benefit and pension services, including administration, actuarial and pension consultancy, investment, Self Invested Personal Pensions (SIPPs) and Small Self Administered Schemes (SSASs) administration, flexible benefits, healthcare, benefit communication and financial education.
JLT Employee Benefits employs over 2,200 professionals throughout the UK and in 2015 had revenues of £167.4m in UK & Ireland.
Pensions and employee benefits companies within the JLT Employee Benefits group of companies include: JLT Benefit Solutions Ltd, Profund Solutions Limited, JLT Wealth Management Limited, JLT Investment Management Limited and Independent Trustee Services Limited. JLT Employee Benefits is part of Jardine Lloyd Thompson Group plc.