The current plans for pensions reform consist of a package of changes to both state and private pensions. The aim is to get more people to save more for their retirement.
Some of the detail has yet to be finalised but it’s clear that pensions reform will completely change the face of the pensions industry in the UK and will begin in October 2012.
Employers’ will have new responsibilities under pensions reform which are built on two principles:
As an employer, you can choose to auto-enrol employees into a qualifying auto-enrolment private pension scheme or into the National Employment Savings Trust (NEST).
The total minimum pension contribution that needs to be paid into a scheme is 8% of qualifying earnings, with the employer needing to contribute at least 3%. Qualifying earnings is different from how most employers currently calculate pensionable earnings so it is important to be aware of the impact and possible solutions.
Financial Options are experienced in providing the most appropriate advice and will give you all the information and tools you need to start preparing and we’ll keep you up to date on all developments as and when they happen. These changes will have a huge impact on a business’ finances so it is important to receive the correct information in order to plan for the pension reforms. Even if you have existing pension provision in place it is important to review this to make sure that it will conform to the new changes.
Please call Sarah Kendell at Financial Options for more details- 0161 764 9944 or email: sarah@financialopts.co.uk
