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.
It's no secret that the economy has been struggling over recent years, and the UK Government is trying to find ways to provide a more positive outlook for people - and these changes in work pension law is one move towards this. As people are living longer, retirement can sometimes last two or three decades, and with state funds diminishing, the Government is trying to make people take more responsibility for their retirement - while also bringing employers into that equation too.
Automatic enrolment for staff members
With larger companies being the first to be targeted, between 2012 and 2016 it will become mandatory for all businesses to automatically enrol their employees into a pension. Pension schemes must be approved by HMRC, or employers can choose the newly created NEST pensions, or National Employment Savings Trusts. For those companies who wish to seek an alternative, it's highly recommended that they take proper pensions advice to make sure that the scheme they choose qualifies with the new rules that have been put into place.
Current scheme holders may also be affected
In the instance that a company already offers a pension to their employees, it's still necessary to ensure that the scheme currently used is run in line with the regulations. Criteria that needs to be met includes levels of contributions and the end benefits to the individual - so you'll either need to check this yourself or seek further advice. An employee doesn't have to continue with a workplace pension, but they should be offered enrolment by their employer as standard procedure, with the option to duck out if they want.
These latest changes in employment pension schemes make it suddenly much more important for both business owners and their staff to put some serious thought into the future. Those in full time employment should take advantage of financial advice services to help them make the decision on whether they'd rather organise their own pension or stay enrolled in their employers offering. On the other hand, employers can no longer make the choice themselves; they must find a scheme that qualifies and ensure that everything is ready to go when they receive their notification to comply.
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.
It's no secret that the economy has been struggling over recent years, and the UK Government is trying to find ways to provide a more positive outlook for people - and these changes in work pension law is one move towards this. As people are living longer, retirement can sometimes last two or three decades, and with state funds diminishing, the Government is trying to make people take more responsibility for their retirement - while also bringing employers into that equation too.
Automatic enrolment for staff members
With larger companies being the first to be targeted, between 2012 and 2016 it will become mandatory for all businesses to automatically enrol their employees into a pension. Pension schemes must be approved by HMRC, or employers can choose the newly created NEST pensions, or National Employment Savings Trusts. For those companies who wish to seek an alternative, it's highly recommended that they take proper pensions advice to make sure that the scheme they choose qualifies with the new rules that have been put into place.
Current scheme holders may also be affected
In the instance that a company already offers a pension to their employees, it's still necessary to ensure that the scheme currently used is run in line with the regulations. Criteria that needs to be met includes levels of contributions and the end benefits to the individual - so you'll either need to check this yourself or seek further advice. An employee doesn't have to continue with a workplace pension, but they should be offered enrolment by their employer as standard procedure, with the option to duck out if they want.
These latest changes in employment pension schemes make it suddenly much more important for both business owners and their staff to put some serious thought into the future. Those in full time employment should take advantage of financial advice services to help them make the decision on whether they'd rather organise their own pension or stay enrolled in their employers offering. On the other hand, employers can no longer make the choice themselves; they must find a scheme that qualifies and ensure that everything is ready to go when they receive their notification to comply.
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