One of the biggest changes in UK pensions is taking place right now. Because people are living longer but not saving adequately for their retirement, the country has been facing a pensions financial ‘black hole’ for some time, leading to the introduction of pensions auto-enrolment.
So what does this mean for your business? Well, auto-enrolment means that employers will need to offer a minimum standard of pension to all of their employees. Rather than ‘opt in’, the UK will have an ‘opt out’ system, where employees will have to make the effort to tell their employer in writing that they don’t want to be part of the pension scheme offered. The government is hoping that this will create a culture of saving for retirement.
