You have pretty much had your head in the sand if you haven’t heard about Auto Enrolment by now. The Pensions Regulator states that more than 100,000 employers have already enrolled six million staff into a workplace pension since its launch in October 2012.
It is now coming to the busiest period reaching small and micro employers. Whether you are a hairdresser, an architect or you employ a personal care assistant you have certain legal duties to offer a workplace pension to your employees. Non-compliance can lead to fines of £500 a day for employers of 5-49, £50 per day for 1-4 employees.
It’s imperative to plan far enough in advance, 83% of firms with 1-9 workers are still yet to stage and while most are on the ball and are compliant, some small employers are leaving preparations too late.
Minister for Pensions Baroness Ros Altmann said: “It is brilliant to see so many millions of people automatically enrolling into a workplace pension. So far, it has been those working for big firms. Now the challenge is to make sure small employers set up pensions, too, so that their employees get to enjoy this major financial benefit.”
Don’t get caught out. Take action sooner rather than later as it’s not going away and you could be left with a lack of choice in pension schemes and a lengthy lead time for set-up. Ideally seek specialist advice to ensure you are on the most cost- effective scheme long term.
Clarke Nicklin Financial Planning have advised many companies on Auto Enrolment, and as part of the service offer a pension and financial planning review to both employers and employees, to clarify all options and implications, whilst identifying the best options which could result in significant cost savings or benefits.
They would be delighted to hold a free initial, no obligation meeting. Call 0161 495 4700 and ask for Kath, or email firstname.lastname@example.org.