Workers as young as 16 are to be included in auto-enrolment (AE), according to Daily Telegraph sources.
It is believed that the government wishes to remove the lower age limit for AE, opening up pensions saving to the youngest workers. Currently employers are only obliged to automatically enroll staff who are aged 22 and above.
The Department for Work and Pensions is undertaking a major review of AE. It will consider the success of the initiative to date and explore ways that the policy can be further developed.
The advisory group that has been tasked with undertaking the review will also gather evidence on those who have multiple jobs, but who do not qualify for AE in any single role. It will also consider how to support those who are self-employed.
Since AE was introduced, nearly seven million people have been enrolled into a workplace pension. This is expected to generate around £17 billion a year more in pension saving by 2019/20.
Richard Harrington, Minister for Pensions, said: ‘Automatic enrolment has been a huge success but there is still significantly more work to do if we are to set the next generation on a path to a financially secure retirement.’
The final report from the advisory group is expected to be delivered later this year.
