The Government has confirmed that the annual earnings threshold for automatic workplace pension enrolment will remain at £10,000 for 2025-26.
Pensions minister Torsten Bell said automatic enrolment thresholds for 2025-26 will be maintained at their 2024-25 levels.
In a written statement he said: “It is important that AE (automatic enrolment) works for individuals, supporting those for whom it makes economic sense to save towards their pensions whilst also ensuring affordability for employers and taxpayers.”
Mr Bell said the Government is committed to looking at long-term steps it can take to further improve pension outcomes.
Ian Futcher, a financial planner at wealth manager Quilter, said: “Torsten Bell has unsurprisingly decided to maintain the automatic enrolment thresholds given the upcoming changes to employer national insurance contributions and the continued financial strain many people are suffering.
“While freezing the thresholds provides stability for both employers and employees, it is still a missed opportunity to drive higher contributions that could secure better retirement outcomes for millions of workers.
“The Government’s decision puts the onus on individuals to ensure they’re saving enough for their future.
“While AE has transformed pension saving, those relying solely on minimum contributions may find themselves falling short of the retirement they desire.”
The automatic workplace pension enrolment amount is reviewed annually. The £10,000 trigger has been kept in place for a number of years. Automatic enrolment obliges employers to enrol all workers into a qualifying workplace pension.
It comes amid concerns about the lack of knowledge about pensions.
More than half of people agreed between 25 and 54 say they feel nervous or unsure about their retirement finances, according to a survey carried out by NFU Mutual.
Fewer than one in 10 people were very confident they would be financially comfortable in retirement – dropping to just 6 per cent for women.
The country’s growing army of self-employed people could also be on track to increase pensioner poverty. Data from the Office for National Statistics shows that 15 per cent of all people in employment now work for themselves. That means they are not automatically enrolled into a pension scheme and that there’s no employer contributing to their savings
