New rules requiring auto enrolment into workplace pensions could affect you soon
A big change is happening in the world of workplace pensions, and it’s important that employers and employees understand the benefits and implications of auto enrolment into workplace pensions.
Auto-enrolment came into effect from October 2012. It means that employers will have to start contributing to pensions for all their ‘eligible’ employees. The date that an employer will have to commence contributions will depend on their size, and each employer will be given a start date known as their ‘staging’ date, which will be before 1 February 2018.
It’s important to know when your staging date is and what schemes you can offer. Although your staging date may be in the future, you need to consider the implications now. Not only do you have to consider how you are going to administer your workplace pension, but also how you are going to finance it. For example, rather than giving your employees an annual pay increase you may wish to consider offering them a pension instead.
Many staging dates will come up at the same time and IFAs will be busy. It’s important to be ahead of the game! Otherwise, it may be difficult to access expert advice when you need it.
It’s important to know whether you are eligible or not, and what scheme your employer intends to offer you.
If you’re eligible, you will be enrolled into your employer’s pension scheme automatically. You can opt out at the start and again every three years if you wish.
If you’re non-eligible, and you’d like to be enrolled into your employer’s pension scheme, you may be able to do so.
Either way, it’s important to understand the full implications.
With this change to workplace pensions, we expect there are going to be many people looking for advice, so don’t delay.