Buzz People

Pension contribution increases a 'harsh jolt' for millions

Millions of workers face a "harsh jolt" to their incomes this month, as the amount they have to pay into their pensions triples in value.
From the start of the new tax year on Friday, workers in auto-enrolment pensions will see minimum contributions rise from 1% of their income to 3%.
One accountancy firm is warning that pay packets will suffer as a result.
But other experts say the contributions are easily affordable and will mean higher incomes in retirement.
"The increase in monthly auto-enrolment pension contributions may result in a decrease in take-home pay for some workers," said Rebecca Goldring, a tax manager at accountancy firm Blick Rothenberg.
"For many, this increase will feel like a harsh jolt."
Register Now