Automatic Enrolment

08 March 2015


Pensions for your staff… don’t delay!

Legislation first introduced in 2012 has changed the face of the pensions industry in the UK, with the biggest businesses the first to be required, by law, to offer employees a pension.

2015 and 2016 are the hot spots for many of us with staging dates, the deadline by which businesses must be ready to offer a pension, landing on the desk for most during this period.

For millions of workers it means a slice of their pay packet may be diverted to a pension, with employers contributing, as well as the government in the form of tax relief.

Demographic changes in the UK will put an enormous strain on the welfare and health sectors as workers are living longer, unless additional provision is made, and this is where automatic enrolment comes in.

Employees can decide whether to opt out or in but they must have the choice, as well as access to the correct information which enables them to make the right choice. But the government is keen that workers begin saving as soon as possible in order to prop up the state pensions they’ll receive in retirement.

 

Under the new scheme, those who work in the UK, are aged over 22 and under the state pension age and earn more than £8,105 a year will automatically be enrolled.

Part-time workers who earn less than that can ask to take part if they want to and, if they earn more than £5,564, their employer will be obliged to make a contribution too.

Those aged under 22, or over state pension age and still working, can also opt-in.

It’s a job that may not be at the top of your list just now, but if it will get there pretty soon, and leaving it to the last minute could be costly. So get in touch with the happy helpers in our tax and pensions scheme and make sure you get it right.  


Posted  08 March 2015

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