This week saw a statement by Gary Opperman, Parliamentary Under Secretary of State for Pension and Financial Inclusion confirming the decisions made in respect of earnings thresholds and triggers for AE in 2022/23. As per the statement:
“An objective of this year’s annual review of the AE earnings trigger and qualifying earnings band (the AE thresholds) is the continued stability of the policy. We also want to ensure that our approach continues to encourage individuals to save towards their pensions whilst ensuring affordability.
Our approach is designed so that everyone who is automatically enrolled continues to pay contributions on a meaningful proportion of their income. The review has concluded to freeze all AE thresholds for 2022/23 at 2021/22 levels. This is consistent with our ambitions to build a stronger, more inclusive savings culture. The Government is considering what more can be done to enable people to have greater financial security in retirement.”
The 2022/23 Annual Thresholds:
- The Automatic Enrolment earnings trigger will remain at £10,000,
- The lower earnings limit of the qualifying earnings band will remain at £6,240,
- The upper earnings limit of the qualifying earnings band will remain at £50,270.
