Steven Cameron, pensions director at Aegon, said this will alleviate any pressure to suspend auto-enrolment contributions which “even for a short period might have undermined the huge success of auto-enrolment to date”.
He added: “Importantly, it also avoids affecting individuals’ longer term finances. Individuals will be expected to pay their minimum contributions from ongoing pay and while they can opt out, this would mean losing valuable employer contributions.
“While employers paying above the minimum will not be able to claim back these additional amounts, including the auto-enrolment minimum in job retention grants is a very welcome demonstration of the importance the government places on ongoing retirement savings.”
What do you think about the issues raised by this story? Email us on email@example.com to let us know.