Auto enrolment more popular than first thought
Employers who have not yet started auto-enrolment must ensure they are fully prepared ahead of their start date after new figures showed that the scheme is already proving more popular with employees than expected.
According to a survey by the National Employment Savings Trust (NEST), one of the providers of pensions via auto-enrolment, just nine per cent of employees who have been automatically enrolled in a workplace pension scheme have chosen to opt out. The Government had previously expected that as many as a third would choose to leave.
Larger companies have already started auto-enrolment, with the smallest firms not required to start until 2017 or 2018. However, the early popularity of the scheme suggests that it is now even more important for employers to be ready for when their start date comes around.
Auto-enrolment is already proving popular, as an increasing number of employees recognise the need to start saving for their retirement.
While many smaller employers will not have to start automatically enrolling their staff in a workplace pension scheme for another three or four years, it is never too early to start seeking advice on your options and preparing for the costs and administration to ensure that everything goes to plan when your start date arrives.
For further information, please contact Tim Preece at the office.
Author: Tim Preece FCCA
A former pupil at Lancaster Royal Grammar School, Tim joined Scott & Wilkinson in 1992 as a trainee after completing a degree in Maths and Economics at Leeds University and qualified as an Accountant in 1996. Tim was...
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