Rachel Reeves to announce review of workplace pensions contributions — here’s what it could mean
What we know about Rachel Reeves’ planned workplace pensions review
- Rachel Reeves, the Chancellor, is scheduled to announce a significant overhaul of the UK's pensions regime during her Mansion House speech on 15 July.
- The planned reforms include the appointment of a commission to assess the adequacy of the pensions system, covering savings among the self-employed, the state pension, and auto-enrolment rates.
- The overhaul is expected to shake up auto-enrolment rules, which currently require staff to contribute at least 8 per cent of earnings above £6,240 to their pension pot.
- Experts, such as the Institute for Fiscal Studies (IFS), warn that current contribution levels are insufficient, potentially leaving many private sector pensioners facing financial insecurity in retirement.
- The IFS recommends decisive action, including ensuring all employees receive at least 3 per cent of their total pay as employer contributions, and providing targeted support for those affected by increases in the state pension age.