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The Pension Tsunami is heading our way.

PensionTsunami

Employers today are coming face to face with some of the most challenging legislation ever to be put in place in respect of pensions – Automatic Enrolment.

Under this scheme all UK employers have to enrol their staff in a company pension scheme and make contributions towards it. If no action is taken, employers risk fines from The Pensions Regulator.

This year alone will see 12,500 employers a month reach their staging date – the date when the law is ‘switched on’ for their company.
By 2015, it will be 40,000 employers a month while, by 2016/17 it could be as much as 135,000 a month.*

At which point every single one of them will need a pension scheme in place.

Putting the Challenge into Perspective
In the last 20 years a total of 200,000 pension schemes have been set-up in the UK. As a result of Automatic Enrolment the industry is now facing the fact that there will be 1.35 million employers who will all need a pension scheme.
This creates a problem in that there just isn’t enough capacity in the industry to get all the employers through their staging. The result is that many employers may well find themselves without a pension provider.

It’s all about preparation and planning
The best chance of employers complying is to start preparations straight away.
At Greaves West & Ayre Wealth Management we can help at every stage of your Automatic Enrolment journey so please get in touch to discuss your requirements.

Employers need to start thinking about Automatic Enrolment now. If they don’t, the tsunami may arrive… and it could be too late!
EmployersStagingGraph
*Details provided by The Pensions Regulator