Auto enrolment is well underway

The Government plan to encourage workplace savings for retirement is well underway.

Many larger firms are reporting lower opt-out rates than were expected which is very good news for the future provision of retirement income in the UK.

A number of commentators (me included) thought that once pension contributions were being deducted from payroll many would react badly to their reduced net pay and “opt-out” of the schemes.

Worse still, we thought that employers (who also have to pay into the pension scheme) would subtly encourage their employees not to join.

This has turned out not to be the case in respect of the larger employer schemes which have been established to date.

Whilst Informed Choice does not advise on auto enrolment into workplace schemes, if you are an employer you should ensure that you are aware of your responsibilities because the Pensions Regulator has the power to fine employers who do not follow the rules.

If you want to find out more about your responsibilities and the dates by which you need to take action visit Creative Auto Enrolment or Johnson Fleming for a full description of the way Auto enrolment works