IFS Proposes Pension Reforms to Boost Retirement Savings

Recommendations include mandatory employer contributions and lowering auto-enrollment age to 16.

The Institute for Fiscal Studies (IFS) has recommended increasing pension contributions for older, middle-class earners to prevent a retirement crisis.
Proposals include mandatory 3% employer contributions for all employees, even if they do not contribute themselves.
The IFS suggests lowering the auto-enrollment age from 22 to 16 to encourage early pension savings.
Higher earners could see default contributions rise from 8% to 12%, with an option to 'opt down' to lower rates.
The reforms aim to improve retirement incomes by up to £2,100 per year, benefiting up to seven million private sector workers.