Zarah ChoudharyThe DWP issued its review of the Automatic Enrolment Earnings Trigger and Qualifying Earnings Band for 2025/26, retaining all three thresholds at their 2024/25 level.
Under the proposed thresholds, the overall level of pension contributions is estimated to be £89.8bn in 2025/2026.
Damon Hopkins, head of DC workplace savings Broadstone, said: “Given the delay to the second part of the Government’s Pension Review that was set to be on pension adequacy, it is of no surprise whatsoever to see the auto-enrolment thresholds maintained for 2025/26.
“The update is a reminder of some of the successes of auto-enrolment with the DWP estimating that the overall level of pension contribution will be nearly £90bn in 2025/2026 under these thresholds.
“Ultimately, however, we know that most workers are not currently saving nearly enough for later-life and urgent change is needed to ensure people can achieve a comfortable retirement.
“The pension sector is seeing rapid innovation in a number of different areas but we would like to see a greater focus on more tangible initiatives and policy which can materially improve retirement incomes of future retirees.”
