Pensions reform is coming!

Legislation dictates that it will soon be compulsory for all employers to offer AND contribute to a ‘qualifying’ company pension for staff.

Moreover (and crucially) staff will also have to contribute. Whilst people can opt-out after enrolment, we believe that the compulsory nature of enrolment is a very positive step for our society as it will undoubtedly improve the savings culture, which is clearly lacking.

For businesses there is no longer any choice. A qualifying scheme has to be offered, and if the employee contributes, so too will the employer.

The government will offer a scheme called National Employment Savings Trust (NEST). This is available to all employers however it is designed to meet the needs of a target market who are completely new to pensions i.e. employers who have previously not offered a pension to staff.

Whilst NEST will undoubtedly occupy a valuable space in the market for SMEs, we believe that a well managed, privately-run group pension scheme can offer significant advantages for employers.  

These advantages include increased staff retention, productivity, and reduced recruitment and training costs. 

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