UK Pension auto-enrolment begins today!

You would be surprised how many small businesses we have had to reiterate this too. Considering the impact on small businesses the feedback we have been getting is that this should have been communicated clearer.

My thoughts on it are this
(1) If you are on the minimum wage or low income or currently have debts needing to be paid, you will hardly want to or be in a position to be putting money aside for retirement.
(2) The running costs, pensions are managed and sold and those that sell and manage pensions normally have ongoing fees throughout the life of the pension and they in some cases get a larger chunk of the pot than the person who has paid into it.
(3) Are these new pension schemes locked into a safe system, making it impossible for either a Government, business or investment institution from tapping into the pension funds for their own benefit?
(4) Who is responsible for giving the pension fund holder impartial advice on this new scheme?
(5) At what age would it not be worthwhile for an employee to join such a scheme 35? 40? 50?
(6) Is there just one fund to invest in or are ther several to choose from?
(7) What are the cast iron guarantees that any money invested is safe?
(8) Is this a cop out for the state pension?

Thats a good point, there's not exactly been much confidence in company run schemes over the last few years. How many people have been stung from failed pension schemes, and business changing the rules, end of final salary pensions etc.


My understanding is that this is supplemental to a state pension, but my cynical side says this is the beginning of the end, as it's only a matter of time before someone accepts the fact that we won't be able to afford state pensions for all. Just wish they would be a little more honest.

At this point it is supplemental but agreed this is the first step towards no state pension

I've felt for some time that the pensions system is unaffordable, especially with the amazing numbers of people who are employed by the government in one form or another. However, as an extremely small business I am worried that the admin effort required to negotiate the new pensions regulations (when they finally apply to our small company) will be the final nail in the coffin for us - and for many other ma and pa type operations. If we do fall into the category which needs to make these payments, then I too would like to be assured that the money is ring-fenced and well managed. We're working too hard to have some dial-a-ferrari nutter run off with our pension plans.

Margaret

I still don't think that for a lot of people that are on low wages they will be wanting to sign up for this. I think that for many they have had it drummed into there heads that if they do nothing and enjoy life, that the state will provide a safety net of benefits when things don't work out. And to be honest that is how it looks, do nothing and get financial aid. Work all your life, get a pension, get a house bring up a decent family, then get hammered by the state...Why bother?

Hi, Barney - did you see the programmes about China recently where they detailed the proportion of income the Chinese save each year for their old age. The part of me which understands the logic of making sure we all have more pension is really fighting with the part of me which wants the state to do it all, LOL.

The "cradle to the grave" mirage comes back to haunt us again and again. We were missold on the idea that the state could afford to take care of us when, in the current economic climate, this is obviously unachievable.

Now that jobs are a global commodity, not local or regional as once was the case, we're going to have to up our game on our attitude to manufacturing, wages and benefits, pensions etc.

Margaret

I think that in the past large industrial companies in the UK had good pension schemes, car manufacturers, sugar refiners even the construction industry had a worthwhile pension, but those days have long gone. I would say that nowadays the majority of workers in the UK work for small businesses with less than 50 or so workers. Many of these workers have not had a pay rise for years, not because the company they work for is being tight fisted, but because the company can genuinely not afford to do so, a lot of businesses are just ticking over for the last 5 years or so. So it would not suprise me in the least if more people are now made redundant so that the employer can now cover their employees pension contribution liability....