Home » Blogs » Manager's blog

Auto-enrolment - what does it mean for you?

Submitted by Manager on Tue, 07/02/2012 - 13:10

A massive pensions reform coming into place this year will have a huge impact on just about anyone working for a company, large or small.

Auto-enrolment will see eligible staff working for companies in the UK automatically enrolled into a pension scheme by their employers.

It has been introduced to try and counter the shortfall between the contributions we’re all making – and the longer lives we’re living. Too many people are not saving for retirement at all, and those who are saving don’t put enough away before they receive their gold watch.

Auto-enrolment simply means automatically enrolling people onto a pension scheme, into which both workers and employers contribute.

Companies are being given a staging date, depending on the size of their company. Larger companies will start this year, and staging dates will continue to 2016. However, companies are free to set up pension arrangements for their staff at any time.

Companies will be required to set up qualifying pension schemes. Even if a pension scheme already exists, it must qualify – meaning it must meet certain conditions and be suitable for automatic enrolment. If it doesn’t qualify, amendments can be made to the existing scheme to ensure it meets the criteria.

Employers must also be prepared to automatically enrol their staff into the scheme, pay their contributions and keep everyone fully informed. They must also register with the Pensions Regulator and provide details of the scheme and the number of enrolled employees.

Workers can opt out of the scheme if they wish, but employers must not encourage this. Nor can they favour people who will opt out when recruiting staff, or treat workers unfairly or put them at a disadvantage because of automatic enrolment.

There are alternative options if you don’t have a pensions scheme, or your scheme does not qualify for automatic enrolment.

If you need to assess your pension scheme, register with a new one or find out how these changes will affect you, contact Inspirational Financial Management’s specialist advisors today on 0845 066 9432.

Call us now on 0845 066 9432 or click here to email us

Woodland View House | 675 Leeds Road | Huddersfield | HD2 1YY
Tel: 0844 980 8801 | Fax: 0844 980 8803

We are authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate will writing and not all forms of long term care plans. IFM Utility Service is not authorised and regulated by the Financial Services Authority. Your home is at risk if you do not keep up repayments on a mortgage or any other loan secured on it. Think carefully before securing other debts on your home. A fee of up to £670.00 inc VAT may be charged on completion of your mortgage. A fee of 1% of advance or £1,080 inc VAT whichever is the greater may be charged on completion of your lifetime mortgage or home Reversion Plan. The Financial Services Authority does not regulate Buy to Let Mortgages.Terms and conditions apply. Written details on request. Tax relief's and allowances referred to are those currently applying and are liable to change. There value depends upon the individual circumstances of the investor.

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.
Neither this site nor its representatives can be held responsible for the accuracy of the contents or information contained within the linked sites accessible from this page.