According to Government legislation, every company has to provide a pension for their workers. Automatic enrolment began in October 2012 with larger companies. Despite everyone else being required to follow suit, many are still unaware of what is truly required, whether their current pension scheme complies with the guidelines and why it is being enforced.
Beacon Wealth Management Ltd are trying to help companies understand this, and are offering a free initial consultation which will state when the changes will affect your company, what you need to do and what will happen if you do nothing.
Why has Auto Enrolment been enforced?
The Government want to encourage individuals to make provision for their own retirement arrangements. In the past a combination of generous employer funded final salary pension schemes and healthy long term investment returns provided a satisfactory environment within which adequate benefits could be generated.
Following increases in mortality rates, lower returns from Gilts, investment market volatility and reductions in employer contributions – there is a growing realisation that too many individuals will not have enough provision on which to generate a retirement income.
You can currently expect to receive from around £155.65 (this could change) a week from your State Pension. (To qualify for a full state pension, you must have 30 qualifying years of national insurance contributions.)
Company pensions are designed to encourage more people to save for their retirement, which is great, but many employers are worried about the affect it will have on their business.
Beacon Wealth Management Ltd understands these worries as they also have to comply with the regulations of offering a pension to all workers.
The first questions many people ask about the new regulations are:
- When will the changes affect them?
- What do they need to do?
- What will happen if you do nothing?
- How much will it all cost?
Whilst it would be lovely to say that one answer fits all, it is not the case, which is probably where a lot of confusion has been created. Beacon Wealth Management Ltd offer a free initial consultation to help you on your journey to implement a qualifying and affordable scheme.
Please contact our Employee Benefits Specialist Phil Ogden on firstname.lastname@example.org
Ask your specialist for advice.
Independent Financial Adviser
Tel: 01480 869466