The amount going into pensions will soon be going up.
From 6 April 2019, the total minimum amount being paid into the workplace pensions both by the employer and the employee, will increase from 5% to 8% of qualifying earnings due to a change in workplace pension regulations. This is based on a qualifying earnings scheme. This is a nationwide change, involving millions of people and their employers.
Changes to pension contributions look like this:
The maximum basic State Pension is just £164.35 per week and is dependent on each individual’s National Insurance record. For most people, this won’t be enough for a comfortable retirement, which is why having personal pension savings is so important. Employees can also make voluntary contributions at any time to increase their personal pension savings.
If you’re an employer you will need to let your team know about these changes. If you need any help with this please do let us know.