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Our Business Expert tells it how it is with workplace pensions
2:08pm Thursday 5th December 2013 in News
DUNCAN Selkirk, is a Knutsford-based Independent Financial Adviser at Platinum IFS.
This week, he talks about workplace pensions.
50,000 employers a month will need to start paying in to Workplace Pensions by the end of 2014
You may well have seen or heard the “we’re all in” advertising campaign for Workplace Pensions, as it has seen almost daily press coverage in recent months. However, most people do not know what it means and whether it will affect them.
Workplace Pensions started in October 2012, though so far only the largest employers have reached their ‘staging date’ – the date they have to comply with the new pensions legislation, enrol their employees into a ‘qualifying pension scheme’ and start making contributions.
Next year, companies with over 58 employees who have not already reached their staging date will do so.
In practice, this will mean that by March 2014, the number of employers in the UK needing to start contributing to a workplace pension will reach 10,000 per month, and by October 2014, this will rise to 50,000 per month (all other non-exempt employers will reach their staging date by 2017).
This massive surge in demand for new workplace pensions is going to place a major strain on Workplace Pension providers, with some already stating that they need six months’ notice to set up a new workplace pension scheme.
The message for employers is that they need to prepare for Workplace Pensions well in advance of their staging date, otherwise they could face major problems, costs and potentially severe financial penalties.
Speaking to an independent financial adviser can help you to establish when and how Workplace Pensions will affect your business and to identify the most appropriate solution for you.
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