Auto-enrolment has made a big difference the workplace pension landscape in many important ways and with the right advice allows you to make the most out of your workplace pension. Firstly, by 2018 it will be legally required for every employer to offer a workplace pension scheme to its employees. Every employee over the age of twenty-two who earns at least £10,000 will have to be enrolled on a workplace pension scheme.
Along with the government state pension, this means the majority of UK people will enter retirement with a number of income streams.
But for many, relying on the government state pension and the pension pot generated by auto-enrolment will represent a significant drop in their annual income, and may not be conducive to the kind of lifestyle they have been used to and want in retirement. Saving into a personal pension plan is an obvious retirement strategy to remedy this, but are there alternative workplace pension options that can be explored?
Since 2012 auto enrolment Warrington has been used for many thousands of employees in workplace pension schemes by many local employers. To make sure your company gets Warrington auto enrolment right and does not end up with a fine, we have put together our guide to auto enrolment Warrington for small businesses.
Between 2016 and 2018 a further 1.8 million companies will reach their staging dates, most of them small employers with 30 or fewer employees.
The Public Accounts Committee has stressed that while the process has been a success so far, the “real test” lies ahead as smaller employers begin to enrol staff.
The Committee also expressed concerns about the “potential burden” being placed on employers with fewer administrative resources as a result of the introduction of measures such as the national living wage and the apprenticeship levy.
Employers are facing new challenges when it comes to the Workplace Pensions. In the next 12 months over 500,000 employers will go through automatic enrolment. The Pensions Regulator (TPR) expect to see a rise in the number of times they need to use their powers, so the message to employers remains clear:
“Start getting your plans in place early or you risk being fined”.
Contact Assured Wealth IFA Altrincham for the help and advice you are going to need.
Some of the powers used by TPR for Workplace Pensions, between July 2012 and the end of September 2015:
2,248 compliance notices
145 unpaid contribution notices
582 fixed penalty notices
7 escalating penalty notices
There is NO reason why any employer should be getting fined for non-compliance, simply set-up your scheme now and leave it in place until the time at which your company reaches it’s staging date (start date).
In 2016 most of the UK smaller companies (SME’s) will have to launch a Workplace pension scheme for their employees.
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They can’t delay having the scheme set-up and in place, otherwise the Pensions Regulator will issue the company with a £400 fine for non compliance. This rises each day that the failure continues. We want to take the headache away for company directors, so we are offering you the chance to WIN your pension scheme set-up for FREE.
In this month’s financial planning advice, we look at how retirees are helping families during their lifetime, rather than traditionally passing wealth to families after their death. When you planned to retire, did your plans look like this?
Workplace pensions for your business. When it comes to ensuring your employees are “all in” you need to get sound independent advice. Why? Simple, you can set the company scheme up on the wrong contribution basis and be paying far too much every month. Going to one of the big nationals won’t help you either as they won’t give you the advice you need, they simply process your application.
Don’t get this wrong, it will cost you more and leave your employee frustrated at the lack of information you give them.
Setting up your scheme can be done in various ways, some calculated methods will increase your costs each month. Get our advisers to assess your payroll to chose the right one for your business.
Why do you look at a pension as one part of the employee reward strategy. It’s tax efficient for your business too, as pension contributions attract corporation tax reductions as a genuine business expense.
Contact our workplace pensions specialist advisers today for friendly help and advice.