“Boosting pension saving is incredibly important but must not be pursued at the expense of people’s financial resilience in the here and now,” she said.
Recent findings from the HL Savings and Resilience Barometer showed that the lowest earning households are really struggling right now, with 89 per cent of the lowest fifth of earners having ‘poor’ or ‘very poor’ levels of financial resilience and almost a third (31 per cent) running behind on payments for essentials, such as electricity.
“It's fair to say that there are low earners who can afford to save into a pension – young people living at home, and those who are part of a higher earning household,” Morrissey said.
“Making sure that these groups are aware they have the ability to be auto-enrolled and build up a pension is hugely important and will be further boosted when the government introduces its 2017 reforms.
“However, the earnings trigger plays a vital role in making sure people are not being put under unnecessary strain by auto-enrolment and should remain in place.”
sonia.rach@ft.com
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