Pensions at Work
This is fast becoming an important consideration for many as ‘auto-enrolment’ is rapidly being introduced. Eventually, virtually all employers will be required to provide, and partially fund, a pension scheme for their employees. When an employer has to start the scheme, depends on their ‘staging date’, with the largest firms first, and the smaller/newer enterprises later. Larger employers already have their schemes up and running with medium/small/new firms in the process or getting ready. This is a sizable task for most employers as the rules require that most employees have to be enrolled whether they like it or not.
The government have set-up a state scheme called NEST, which many employers are likely to use. NEST is simple in that there are very limited investment choices & flexibility allowed in the scheme, so few decisions to make.
NEST is a relatively ‘low cost’ option, although the required contributions for both employer & employee are the same for all schemes allowed under auto-enrolment.
Other employers, typically those with ‘key personnel’ or ‘specialists people’ that they wish to retain, are setting up more sophisticated schemes which are more individual, and where we can help. We only recommend qualifying group schemes that offer all members the features that they need, as well as assisting in the running of the scheme to ensure that legislation is complied with. Our advisers provide all personnel with individual advice regarding their investment options to avoid the possibility of staff ‘being shoehorned’ in asset classes that are not in accord with their risk profile or capacity for loss.
In some instances we are able to reduce national insurance contributions (employer & employee) to assist in funding the scheme. This is called ‘Salary Sacrifice’.
Whether you are an employee that has been offered a pension scheme, or an employer that will be faced with the challenge of providing one, please give us a call, drop an email, or click the ‘contact’ button.