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February 2018

Auto enrolment increase – 6 April 2018

On 6th April 2018 both employer and employee regulatory increases will be applied to all pension schemes for auto enrolment, with further increases to be made in April 2019.

It is the employers obligation to inform employees of this increase as they will be automatically applied by your pension provider.

The amount that you and your staff pay into your pension scheme will vary depending on the type of scheme you have chosen and the rules of that scheme, for example if you have opted for a basic salary scheme the contributions differ.

Most employers use the schemes that currently require a total minimum of 2% contribution to be paid. The scheme contributions are calculated on a range of qualifying earnings between the proposed lower limit of £6,032 and upper limit of £46,350 (2018/19 tax year).

 

Date

Employer minimum contribution  Employee contribution Total minimum contribution
Up to 5 April 2018 1% 1% 2%
6 April 2018 2% 3% 5%
6 April 2019 3% 5% 8%

 

You do not need to take any further action if you don’t have any staff in a pension scheme for automatic enrolment or you are already paying above the increased minimum amounts.

If any of your employees do not want to increase their contribution they must opt out of the scheme by April 5, 2018. As an employer though you cannot be seen to be offering advice on this, you need to remain impartial.

Clarke Nicklin’s IFAs have achieved the ‘Certificate in Pensions Automatic Enrolment’ designed to specifically meet the needs of those advising on, or implementing the requirements of Auto Enrolment. We will always assess each clients’ circumstances in detail to arrive at the best scheme for both employers and staff on an ongoing basis as circumstances and objectives of the company evolve.

If you wish to discuss this further with one of our advisors please do not hesitate to call Kath Arnold on 0161 495 4700 or email kathrynarnold@cnfp.co.uk who will make an appointment on their behalf.

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Differing generations – Are you a stereotypical saver?

There are many differing statistics around attitudes to saving and investing, suggesting as we mature our focus and mind set will shift.

According to statistics*, Millennials (age 21-34) focus on working in a fulfilling career and making money, whilst as we move into Generation X (age 35-49) we focus more on health, keeping fit and family time.

Across generations, a common theme is the feeling that they are not saving enough. Only one third of Generation Z (age 15-20) and Millennials feel they are saving enough for their financial future, but about half are not confident in their saving strategies. Half of Generation X respondents, and about four in ten Baby Boomers (age 50-72) and the Silent Generation (age 73 upwards) respondents are saving some money, but are not confident in their financial futures.

Whatever your age or personal situation, it is vital to consider your saving strategy as early as possible, and reassess regularly on an ongoing basis. Any savings plan needs to be specific to personal circumstances and objectives, and needs linking to all aspects of your personal finances.

At Clarke Nicklin Financial Planning, we will always assess each clients’ circumstances in detail to arrive at a savings strategy that meets personal objectives. For every client, we will review and revise this with you on an ongoing basis as circumstances and objectives evolve due to your personal and family circumstances changing.
If you wish to discuss this further with one of our advisors please do not hesitate to call Kath Arnold on 0161 495 4700 or email kathrynarnold@cnfp.co.uk.

Important information

The value of investments and income from them may go down. you may not get back the original amount invested. Past performance is not a reliable indicator of future performance.

*The Neilsen generational lifestyle survey 2015 an online survey of 30,000 consumers in 60 countries. Neilsen is a leading global information & measurement company.

 

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