Workplace Pensions……..

Workplace Pensions……..

It’s some way off yet, but we can see the way it’s going, even 18 year old employees will have be enrolled for saving in a workplace pension scheme.

The scheme will mean automatic enrolment unless the employee opts out. It will ultimately affect some 900,000 18 year olds, says the government, and hopes to introduce the scheme in the mid 2020s.

At present, the scheme means employers must enrol staff aged 22 and over and earning above £10,000 into a pension.

The pensions scheme was introduced in October 2012, extended since, and imposes costs on employers. Opt out rates have been less than the government originally anticipated

Anyone on a short-term contract, working where an agency pays their wages, or who is on maternity, adoption or carer’s leave should still be eligible.

The total minimum contribution is currently set at 2% of earnings (0.8% from the worker, 1% from an employer, and 0.2% as tax relief from the government).