Auto-enrolment – Good news for employees of smaller firms
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Auto-enrolment – Good news for employees of smaller firms
The Institute for Fiscal Studies (IFS)* has been reviewing the pensions landscape and drawn some interesting conclusions about how auto-enrolment has changed the number of people saving into a pension. The scheme has been hailed an “extraordinary success”, by Minister for Pensions and Financial Inclusion, Guy Opperman.
The IFS estimates that before the advent of auto-enrolment, the number of small business employees saving for retirement was fewer than one in six; that figure has subsequently increased to seven in ten. With over a quarter of UK private sector employees working for a small business, this increase in participation really shows how the scheme is improving the pension prospects for millions.
*IFS, Mar 2019
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
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