How employers can be prepared for workplace pension changes
Here are some tips for employers from the Department for Work and Pensions (DWP) for being prepared for the changes under automatic enrolment:
1. The contribution increases will help staff save for a more secure financial future. But if your staff have questions about their finances that you cannot answer, support for them is available from the Money Advice Service, the Pensions Advisory Service and, for those approaching retirement, the Pension Wise service. All of these services are free and impartial and will help them get to know their finances and what their options are.
2. As contribution rates increase it is important to explain the benefits of the workplace pension to employees - it is a benefit you provide so it may help with recruiting and retaining staff. Saving early on can significantly boost your employees' savings - money put into a pension now could benefit from years of compound interest before it is needed. By 2019, for every £40 your employee puts in you will pay £30 and there may be an additional £10 from tax relief.
3. The support of employers has been key to automatic enrolment's success so far, and will continue to be vital.
In October 2017, Government research indicated that micro and small employers - which represent 98% of all UK businesses - are finding automatic enrolment "necessary", "sensible" and "easier to implement than first expected".
The Pensions Regulator will write to you with any action you need to take but for more information visit www.thepensionsregulator.gov.uk/en/employers.