COMMENT

Workplace pension savers will see their minimum contributions increased from today, as the next stage in boosting people’s future retirement incomes gets under way.

Today sees a step up in minimum pension contribution rates under automatic enrolment, which started in 2012 to kickstart a new savings culture amid fears people were not putting aside enough.

Minimum pension contribution rates under automatic enrolment will rise to a combined 5 per cent, with a minimum of 2 per cent from the employer and the remaining 3 per cent from staff.

Previously,theminimum contribution rate was set at 2 per cent, comprising 1 per cent from staff and 1 per cent from their employers.

In April 2019, the rate will increase again, to 8 per cent, with a minimum of 3 per cent from the employer, leaving a 5 per cent minimum staff contribution.