UK. Pension contribution increases a ‘harsh jolt’ for millions
From the start of the new tax year on Friday, workers in auto-enrolment pensions will see minimum contributions rise from 1% of their income to 3%.
One accountancy firm is warning that pay packets will suffer as a result.
But other experts say the contributions are easily affordable and will mean higher incomes in retirement.
“The increase in monthly auto-enrolment pension contributions may result in a decrease in take-home pay for some workers,” said Rebecca Goldring, a tax manager at accountancy firm Blick Rothenberg.
Read More: BBC News