Commenting on the Government announcement of a six month deferral in the stepping up of auto-enrolment rates, Stewart Hastie, Partner, Tax & Pensions, said: “While this may ease the pensions cost burden on employers, this just kicks the can down the road in terms of addressing the UK’s savings gap. It is widely accepted that the UK is simply not saving enough to fund retirement and this decision will essentially take £3 billion out of employees’ savings in the next three years*.”
*The Government forecasts £840m of tax revenue due to the delay in auto-enrolment stepping up, which equates to over £3 billion of gross pension saving.
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