Teenagers Offered Workplace Pensions

Auto-enrolment will now include workers from the age of 18, paving the way for a generation of pensioners with 50 years of accumulated savings

Emma Wall 20 December, 2017 | 1:54PM

The Government has recommended lowering of the auto-enrolment age threshold to 18 – setting up thousands of teenagers for a well-funded retirement. Currently the threshold for auto-enrolment is 22. Lowering age threshold would qualify nearly one million workers for auto-enrolment, resulting in an extra £770 million in annual pension savings.

There are still millions of workers who are failing to contribute sufficient amounts

Providing these individuals do not opt out of their workplace schemes, they will be beginning a multi-decade savings journey – half a century of compound interest, pound cost averaging and falling costs resulting in a tidy sum come retirement.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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