The pensions time bomb for the next generation

The Problem

• There are approximately 19 million workers in the UK and just over half save little or nothing for their retirement.
• 86% of the 1.2 million private sector employers have no pension scheme to which they contribute.
  By 2035 statepensions and other benefits paid to pensioners are forecast to cost £189 billion in today’s prices
• This is seen as a cost the UK cannot afford – without punitive levels of taxation

The Government’s Solution

• ´Compulsory´ workplace pension provision, known as auto enrolment.
• You will have to operate and contribute to a pension scheme for your employees that meets minimum contribution requirements.
• No longer will providing a pension scheme for your employees be a voluntary matter.

Starting from your staging date, any UK employer who employs at least one person will be legally obliged to:

• Set up and register a pension scheme suitable for automatic enrolment
• Automatically enrol certain workers into that pension scheme and make contributions for them
• Manage the automatic enrolment, joining and opt out processes
• Provide specific information to workers, pension scheme providers and The Pensions Regulator
• Keep records of how they have fulfilled and continue to fulfil their duties