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