Sarah Travers, Senior Financial Adviser
Posted in Pensions & Retirement, Company Pensions on 16.12.11

Workplace Pension Reform

As we reported in our Summer newsletter, Workplace Pension Reform will bring with it auto-enrolment which is intended to ensure that the thousands of workers who currently fail to take up the opportunity to join their employers’ pension schemes each year are automatically included unless they elect to opt out.

The Government has recently announced that auto-enrolment for small firms of up to 50 employees will be delayed until after the next general election in 2015.  Employers with up to 3,000 employees will also see the staging of auto-enrolment delayed.

Whilst this may be apparent good news for small business owners, the decision has been criticised for fuelling further uncertainty about the long term prospects of auto-enrolment.  However, Pensions Minister, Steve Webb, has stated that the momentum behind auto-enrolment will be “unstoppable” by 2015.

Comment

Despite the delay to the auto-enrolment process for smaller firms, the process for larger firms will commence in October 2012 as planned.  Individuals working for large employers may therefore find themselves faced with the decision whether to opt out which will require careful consideration.  In most cases, the commitment of at least a 3% contribution from their employer will make it worthwhile to stay in the pension scheme.

Business owners, whether small or large, will need to address the Workplace Pension Reforms over the coming years.  Those with existing pension schemes on offer can apply for certification that the scheme meets the auto-enrolment criteria.

At Fiducia we are able to advise both individuals and business owners on their options and in the latter case, review any existing arrangements for compatibility with auto-enrolment requirements. Please contact us if you would like further information.

 

If you would like to know more about how we as Financial Advisers can help you  with your Pensions and overall Retirement Planning then visit the Retirement Planning section of  our website: Retirement Planning  or send us email at: email@fiduciawealth.co.uk

The information contained in website is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly no responsibility can be assumed by Fiducia Wealth Management Limited, or any associated companies or persons, its officers or its employees, for any loss occasioned in connection with the content hereof and any such action or inaction. Professional financial advice is necessary for every case.

Fiducia are an award winning firm of Financial Advisers based in Dedham near Colchester situated in the heart of Constable Country on the Essex Suffolk border. www.fiduciawealth.co.uk

Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, Essex, CO7 6AD.

Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority.. FCA No. 408210

Sarah Travers, Senior Financial Adviser
Posted in Pensions & Retirement, Company Pensions on 16.12.11