The government has announced the higher earnings thresholds for automatic enrolment into pension schemes.The Department for Work and Pensions (DWP) has revealed that workers aged between 22 and the state pension age will be automatically enrolled into a company pension scheme if they earn a minimum of £8,105.Under the new rulings, the lower limit for qualifying earnings - when workers can join pension schemes but are not auto-enrolled - will be £5,564. Furthermore, pension contributions will be payable on earnings up to £42,475.The new measures mean that the automatic enrolment lower and upper earnings triggers are brought in-line with the personal income tax allowance and 40 per cent income tax bracket respectively.A spokesperson for the DWP revealed that a flexible approach to the earnings limits is required.They said: "A lock-in to any particular approach may not be suitable or sustainable in the event of any future developments in the structure of tax and national insurance, changes in expected savings patterns or in economic circumstances, so it is important that flexibility to review the thresholds and triggers for future years is retained."The UK's largest companies are due to begin automatically enrolling their employees into their workplace pension scheme from October 2012.
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Tax allowances and state benefits