- 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