Auto-enrolment is here......are you ready?
Don't miss your deadline; We can help you! We have financial advisors in Devon who can take you through the whole process to ensure you comply with the current regulations.
What is Auto-enrolment?
Auto-enrolment was introduced by legislation commencing from October 2012 to help more people start saving for their retirement. The legislation states that all employers must offer a workplace pension scheme and automatically enrol "eligible" workers into it and make pension contributions on their behalf. Initially this requirment applied to larger employers, but as we start to see auto-enrolment roll out to medium and smaller sized employers, the pensions industry expects to see capacity issues in terms of both available pension advisers and pension scheme providers. Employers are therefore advised to plan early for their auto-enrolment duties.
Why is it happening?
People are now living longer than ever before. This means that they will enjoy a longer retirement. However, people are either not saving for it or not saving enough to provide them with the security they require. Auto-enrolment has been designed to bridge this funding gap and encourage people to think more about how they will fund their retirement.
What happens if I don't automatically enrol my employees?
There are significant complexities for all employers; even those employers with good existing pension schemes are finding that with 33 new responsibilities, changes to existing pension schemes are required. Employers currently with no pensions will face the largest challenge, both in terms of technicalities and cost.
However, non-compliance is not an option for employers. The Pension Regulator has a range of powers including fines ranging from fixed