Saving for tomorrow, today
It used to be the case that employees could decide for themselves whether or not they wanted to pay into a pension to save for their retirement years. But the government found that, as a result, people didn’t have enough money to support them in later life.
Since 2012, new rules have been in place, which mean workers must enter a workplace pension scheme that their employer contributes to. This is known as automatic enrolment. If you’re a business owner and need support with this, we’re here for you.
Your questions, answered
Who’s eligible for auto-enrolment pensions?
To be eligible for auto-enrolment, workers must be aged between 22 and the State Pension age and earn £10,000 or more. They also need to ordinarily work in the UK, and can’t be enrolled in any other workplace pension scheme.
It’s important that you understand these criteria, and make sure you automatically enrol any worker who meets them. Remember, though, that workers who don’t fall into this category can still choose to join your workplace pension scheme if they wish to do so.
How much does auto-enrolment cost?
The minimum contributions for auto-enrolment are 5% from the worker (which includes tax relief) and 3% from you as an employer. For employees, their qualifying earnings are anything over £6,240 up to a limit of £50,270 (in the 2023/23 tax year).
In this example, if the employee earns £18,000 a year, their minimum contribution would be a percentage of £11,760 (the difference between £6,240 and £18,000). This all depends on how you’ve set up your workplace pension scheme, though, and we can talk you through the options.
Can employees opt out of auto-enrolment?
If an employee decides they don’t want to contribute to a workplace pension they’ve been automatically enrolled in, they can opt out of it. Time limits apply to this, so it’s vital that you check these.
As an employer, you’re required to re-enrol the worker who’s opted out of the scheme every three years as long as they’re still eligible. Don’t worry if you’re uncertain about what to do, though, because we’re in your corner and ready to guide you through every stage of the process.
What duties do I have as an employer?
Employers with more than one member of staff are responsible for offering their employees a workplace pension scheme. You’ll need to enrol anyone who’s eligible or wants to join this scheme, and pay into it accordingly.
You’ll also need to complete a declaration with The Pensions Regulator. Our experts can help you through the process of registering for this, and completing the necessary questions. They’ll make a complicated process simple, and remove any undue stress and worry.
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How it works
In our first meeting together, we’ll establish what your financial goals and aspirations are and gain an understanding of your current circumstances. If applicable, we’ll also determine how comfortable you are with risk.
Analysis & Research
We’ll take a deep dive into all of the information provided and the financial data available to us. By analysing this, we can begin planning a journey to help you reach your financial goals.
We’ll present our plan back to you in the form of a report. This detailed but easy-to-follow document will contain all our expert recommendations for achieving your aims.
Implementation & Reviews
If you agree with our recommendations, we’ll put your strategy into place. We’ll review your goals regularly, and tailor our ongoing support based on your preferences and unique needs.
You’ll find a wealth of information here in our dedicated home for insights and useful resources, regularly updated so you’re always in the loop.
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Make an enquiry and a member of our friendly team will contact you to discuss.