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Reeves to Trigger Review of Pension Auto-Enrolment Contributions

The government will examine lifting the scheme’s minimum 8 percent rate toward 12 percent to address concerns over retirement saving adequacy.

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Overview

  • Chancellor Rachel Reeves will formally launch the Department for Work and Pensions-led auto-enrolment review during her Mansion House speech next Tuesday, ahead of Parliament’s summer recess.
  • The review will consider raising total contributions above the current 8 percent level, with pension providers advocating a phased increase to 12 percent.
  • It builds on the Pension Schemes Bill reforms of May–June that merged small pots into megafunds to cut fees and strengthen domestic investment.
  • The Office for Budget Responsibility has flagged that private pension savings remain insufficient to secure adequate retirement income and could increase pressure on public finances.
  • Business groups had shelved a consultation on higher contributions last year after an employer National Insurance rise, and the DWP plans fresh stakeholder engagement as part of this review.