Employers today are coming face to face with some of the most challenging legislation ever to be put in place in respect of pensions – Automatic Enrolment.
Under this scheme all UK employers have to enrol their staff in a company pension scheme and make contributions towards it. If no action is taken, employers risk fines from The Pensions Regulator.
This year alone will see 12,500 employers a month reach their staging date – the date when the law is ‘switched on’ for their company.
By 2015, it will be 40,000 employers a month while, by 2016/17 it could be as much as 135,000 a month.*
At which point every single one of them will need a pension scheme in place.
Putting the Challenge into Perspective
In the last 20 years a total of 200,000 pension schemes have been set-up in the UK. As a result of Automatic Enrolment the industry is now facing the fact that there will be 1.35 million employers who will all need a pension scheme.
This creates a problem in that there just isn’t enough capacity in the industry to get all the employers through their staging. The result is that many employers may well find themselves without a pension provider.
It’s all about preparation and planning
The best chance of employers complying is to start preparations straight away.
At Greaves West & Ayre Wealth Management we can help at every stage of your Automatic Enrolment journey so please get in touch to discuss your requirements.