A former Conservative minister has proposed lowering the automatic pension enrolment age from 22 to 18, which could make young workers £30,000 better off in retirement. Tory MP Jonathan Gullis described the reforms as 'transformative' for future pensioners.
Currently, employers must automatically enrol workers aged 22 to State Pension age earning at least £10,000 a year into a pension scheme. The proposed changes would extend this to workers under 22 and reduce or remove the lower earnings limit.
The Pensions (Extension of Automatic Enrolment) (No. 2) Bill, which aims to reduce the age threshold to 18, has cleared the House of Commons unopposed and will now be considered by the House of Lords. Mr Gullis said the change would allow young people to start saving from the beginning of their working lives, with compound interest potentially boosting their retirement pot by £30,000.
Shadow work and pensions minister Alison McGovern backed the Bill but questioned the government's timeline for implementation. DWP Minister Laura Trott confirmed the commitment to roll out the changes by the mid-2020s, pending consultation.
