Questions are now however being raised about its future Changes announced to auto-enrolment last week have raised questions regarding the future of the state pension. The DWP has proposed that workplace pensions be offered to employees from age 18 instead of the current age 22 which is brilliant news for the young workers.
For example, if £50 a month is contributed over 50 years that works out to an individual contribution of just £30,000. However, with the tax efficient bonus from their workplace pension and indeed your employer contributions, your pension pot could end up being 20, 30, 40, even 50 times this amount.
The State Pension is a considerable liability for the state and this paves the way for state pension not to be offered to young workers. However, this only will work if young workers do not opt out of their workplace pension. So, it’s essential that they take advantage of it when it is offered.
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