Between October 2012 and April 2017 all employers with UK-based staff will need to automatically enrol all eligible (between age 22 and state pension age, earning above a set minimum) employees into a workplace pension scheme. Each employer has a set staging date by when to do this based on their payroll size. There are compulsory pension contributions from both employers and employees. These will be introduced gradually on a sliding scale until reaching the maximum contribution levels in 2018 of 3% for employers and 4% for employees plus a 1% in tax breaks.
Hargreaves Lansdown research: 30% are aware of their retirement options.
Scottish Widows research: Up from 53% at large firms in 2013.
Aegon research: But 6% say 5% is unaffordable.
Helen Dean will take up the role this autumn.
What opportunities does pensions auto-re-enrolment bring employers?
Employers should also review pensions provider.
Why are some large employers re-doing auto-enrolment?
Consultants and advisers concerned about ability to service
Pensions auto-re-enrolment gives employers the chance to review their benefits offering.
Employee benefits can create risks for an organisation.
What opportunities does this bring employers?
But employers have no way of knowing how good a supplier is ahead of time.
Towers Watson research: The average in FTSE 350 firms is 6%.
Nest research: 34% will think about retirement sooner.
Close Brothers research: 30% are aware but await revised plan terms.