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What is happening?
The Government wants workers without a company pension to start saving towards retirement. The new rules will see firms automatically enrol staff into a pension scheme. Workers who do not want to join can then choose to opt out.
The Government wants workers without a company pension to start saving towards retirement. The new rules will see firms automatically enrol staff into a pension scheme. Workers who do not want to join can then choose to opt out.
Which workers qualify?
Anyone aged over 22, and below the State pension age, who earns £8,105 or more a year with that employer, must be auto-enrolled.
Anyone aged over 22, and below the State pension age, who earns £8,105 or more a year with that employer, must be auto-enrolled.
Read more HERE
Millions of workers face smaller pay rises because of a government plan to tackle Britain’s pensions crisis, an official report revealed yesterday. Four in ten bosses say they will slash - or even scrap - annual salary boosts when new rules force them to pay pension for every member of staff from this October, an employers pension report from the Department for Work and Pensions (DWP) said. ‘With employers expecting costs to increase, two-fifths of bosses plan to pass the costs on to employees in the form of reduced wage increases,’ says Tom McPhail of independent financial adviser Hargreaves Lansdown. ‘Many people have suffered a fall in their standard of living in recent years; auto enrolment could extend the pain.’ From October, over eight million workers will be enrolled into a work pension for the first time. It is part of a government drive to prevent future pensioners falling back on state benefits in old age, with ministers worried about a savings drought...........Read more here: Millions of workers face smaller pay rises because of new auto enrolment pension rules
Some 600,000 people are expected to be enrolled into a workplace pension by the end of the year under a new system that automatically diverts funds from their pay packet. The automatic enrolment scheme begins on 1 October and will mark one of the biggest changes to the pension system in the UK. It will start with the largest firms. Employers and staff will pay contributions into pension savings unless the worker opts out. Workers aged over 22, earning more than £8,105 and not already signed up to a workplace pension scheme will be automatically enrolled into a pension scheme. However, this system will be phased in gradually, with workers in the smallest firms not seeing a change for a few years....Read more here: BBC News - Pensions: Automatic enrolment system timetable revealed
Up to nine million people will be automatically recruited into company-backed pension schemes by 2018. But the Pensions Institute says if they join an existing defined-contribution scheme, they could face very high charges and poor investment returns. The report says high charges on "legacy" schemes must be abolished. "Charges for default funds in large new auto-enrolment schemes generally represent good value, but tens of thousands of employees currently are trapped in the funds of older schemes with high and disguised charges," the report's authors say.....Read more here: Auto-enrolment open to mis-selling, pension experts warn