Changes to UK employment pension laws
Many people seek pensions advice every year, looking for a way to ensure a secure retirement once they finish work for good. Using professional financial advice services has many benefits, such as allowing you to gain comprehensive help and a realistic view of your options and opportunities. However, with legislation changes being rolled out for employers as of October 2012, it's not just individuals that need to find the best pension schemes available - and therefore seek advice on the best way forward.
Governments are constantly introducing laws and changes to the financial landscape - and this is especially true when the economy is floundering as it has been for the last few years. The biggest concern regarding pensions seems to be a comparatively longer expected lifespan for the average UK citizen along, with the worry that many people are continuing to rely on the state pension rather than make their own arrangements.
Automatic enrolment into workplace pension schemes
Between 2012 to 2016, every business that employs staff will need to provide automatic enrolment into a pension scheme - starting with companies that have the largest number of employees and continuing until every business is compliant. A new type of pension called a NEST, (National Employment Savings Trust) has been introduced for this very reason - although businesses can also to choose an alternative as long as it's run according to the stated criteria. If you're an employer and you don't want to invest in a NEST, getting professional pensions advice could mean the difference between compliance and breaking the rules.
All businesses must be compliant
Because of the change in legislation, even if your company offers a pension scheme to your employees, you still need to check that it meets the required obligations. The rules are largely centred on levels of contributions and the schemes benefits, so you need to check exactly what any legislation covers. While enrolment should be automatic, your staff can opt out if they want to - but in no way should you try to push them into making this decision.
These changes in legislation mean that both employers and employees need to really start thinking about pensions and taking them much more seriously. For workers, it's imperative that they take advantage of the different financial advice services that are available, so that they can decide whether they're better off being enrolled in a workplace scheme or if they'd prefer to take control of their retirement themselves. For employers, the onus is on them to find appropriate schemes and have them set up and ready when required.
Many people seek pensions advice every year, looking for a way to ensure a secure retirement once they finish work for good. Using professional financial advice services has many benefits, such as allowing you to gain comprehensive help and a realistic view of your options and opportunities. However, with legislation changes being rolled out for employers as of October 2012, it's not just individuals that need to find the best pension schemes available - and therefore seek advice on the best way forward.
Governments are constantly introducing laws and changes to the financial landscape - and this is especially true when the economy is floundering as it has been for the last few years. The biggest concern regarding pensions seems to be a comparatively longer expected lifespan for the average UK citizen along, with the worry that many people are continuing to rely on the state pension rather than make their own arrangements.
Automatic enrolment into workplace pension schemes
Between 2012 to 2016, every business that employs staff will need to provide automatic enrolment into a pension scheme - starting with companies that have the largest number of employees and continuing until every business is compliant. A new type of pension called a NEST, (National Employment Savings Trust) has been introduced for this very reason - although businesses can also to choose an alternative as long as it's run according to the stated criteria. If you're an employer and you don't want to invest in a NEST, getting professional pensions advice could mean the difference between compliance and breaking the rules.
All businesses must be compliant
Because of the change in legislation, even if your company offers a pension scheme to your employees, you still need to check that it meets the required obligations. The rules are largely centred on levels of contributions and the schemes benefits, so you need to check exactly what any legislation covers. While enrolment should be automatic, your staff can opt out if they want to - but in no way should you try to push them into making this decision.
These changes in legislation mean that both employers and employees need to really start thinking about pensions and taking them much more seriously. For workers, it's imperative that they take advantage of the different financial advice services that are available, so that they can decide whether they're better off being enrolled in a workplace scheme or if they'd prefer to take control of their retirement themselves. For employers, the onus is on them to find appropriate schemes and have them set up and ready when required.
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