Big changes are coming to the pension system in the UK.
Until now, the pension system has worked on an opt-in basis. There were private pension schemes and employers had to offer stakeholder schemes, but the decision about to whether to put any money in them or not rested with the individual employee. Unsurprisingly the number of people saving for their retirement was not what one would have hoped!
Under the new rules, employers will have to offer their employees a pension scheme and it will be up to the employee to opt-out.
The employer will also be required to make contributions.
The largest businesses are already signed up. Smaller businesses will be affected by auto-enrolment by 1 September 2018 at the latest.
It may seem a long way in the future, but you need to be aware of how this will affect your business.
For a quick briefing on auto-enrolment and opportunities the well advised can take advantage of to pay less tax as a result, please check out our new newsletter: