New rules requiring auto enrolment into workplace pensions could affect you soon
A big change has been 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 now have to contribute to pensions for all their ‘eligible’ employees. The date that an employer had to commence contributions depended on their size, and each employer was given a start date known as their ‘staging’ date, all of which were before 1 February 2018.
Existing employers should by now have their schemes in place, but new employers will still need to set them up. It’s important to know what schemes you can offer, and 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 offers 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 still 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.