With Auto enrolment looming and only 13 months away, the first companies will shortly be receiving correspondence from The Pensions Regulator setting out their requirements at both an administration and financial level.
Employers are not the only people that will be affected by the reforms and in an online survey carried out between 20th – 24th June 2011 by YouGov on behalf of the Chartered Institute of Personnel and Development (CIPD), 2013 employees provided answers on the upcoming reforms, the answers of which make very interesting reading.
When asked if they were aware of the upcoming legislation, 46% of those working in the private sector and 42% of those employed in the voluntary sector said they were.
Education, Education, Education
The employee feedback suggests that due to the current below-inflationary pay rises, employees are worried about maintaining their existing living standards and their concerns include:-
- Can I afford to increase my contributions or start to make contributions into a pension plan when auto enrolment comes in?
- Can I afford not to increase my contributions or start to make contributions into a pension plan when auto enrolment comes in?
- What will I get from the state if I do nothing?
If the economy does start to grow at a fast pace both employees and employers alike will be in a better position to absorb the costs associated with Workplace Pensions Reforms. However, if as expected, the recovery is more gradual there will need to be greater emphasis on educating employees on why saving for retirement makes sense, especially with proposals to move away from means-tested state pension benefits.
With auto enrolment heading towards all businesses at an alarming pace, it is encouraging that employees are becoming increasingly aware of the reforms and how the reforms will affect them. The numbers also confirm there is a lot more work that needs to be done in educating all affected parties on the impact of the reforms and this is where Wingate Benefit Solutions can help.
Wingate Benefits Solutions are here to assist you, your business and your staff in planning and preparing for the new reforms. Should you wish to discuss the above in more detail or any other aspect of your business please do not hesitate to contact Wingate Benefit Solutions on 0844 406 0027.
Tax and legislation are liable to change. This information is based on WBS’s current understanding of UK law and HM Revenue & Customs practice and legislation we believe may apply in the future. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of the information contained herewith. It is recommended that professional advice is sought prior to entering into any financial arrangement.