For many years governments have put off implementing compulsory pensions for employees. The introduction of Stakeholder pensions in 2001 was meant to encourage employers and employees to start saving for retirement.The reality was that very few did and those employers who were obligated to make Stakeholder plans available to their employees did very little if anything to promote them.
The financial burden on the state for looking after those in retirement has risen rapidly as we live longer and demographics means that fewer workers are having to support more pensioners and as we all know the government is broke.
The last government introduced a new scheme which they have been hatching over the last few years. It’s final incarnation is known as NEST the National Employment Savings Trust, the UK workplace pension scheme that is scheduled to start in 2012. It is a compulsory scheme and all employers must contribute either to NEST or an equivalent scheme of their own.
But don’t panic! For most companies the scheme will not be implemented (known as staging dates) until 2014 for companies with 250 or less employees or even as late as 2016 for smaller companies.
If you would like to know more about the implications of NEST on your business and what you need to do, we can help you to go through the details of the scheme and help you to make the right decisions before you have to register. It will be worth visiting the NEST website first for more information, and then give us a call.
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