NEW TODAY : Obligatory employer pension schemes
Well, today’s the day
“AUTO ENROLLMENT” as it’s called.
New employer pension scheme rules come into force.
Starting with the largest employers first, over the next few years, eventually all employers will be required to have an “in house” pension schemes for employees to join. If they want to.
Both employees and employers are required to put money into these schemes (but not much).
If you haven’t heard from you employer about these new schemes then it’s probably because your employer isn’t yet obliged to offer you one.
But the time will come.
Ask your employer if you don’t know.
Stephen Webb, government pensions spokesman, talking today agreed that the amount of money to be put into these new employer pensions was, at this stage, grossly inadequate but that it was important to “at least get people saving” as there are many folk who don’t save a penny.
The trouble for me is – if someone goes into one of these new employer backed pension schemes they may think “well, that’s the job done then. Pension sorted”.
NO IT ISN’T.
People need to be saving BIG TIME for retirement.
How you do it is up to you – pensions, ISA, property and so on.
Whatever your saving of choice…..DO IT and don’t rely on these new schemes to be your savior in retirement.