Pension Auto Enrolment
By now you must have seen the adverts on TV and in he papers about the new Pension Auto Enrolment scheme. Lots of employers have now reached their staging date – the date at which they must enrol you into a pension that meets certain criteria. Some employers may not have reached their date yet, but lots will be included by next year. All employers must be up to speed by 2018.
It is important that you know your rights with regard to the pension and although your employer must join you into the scheme, you have a right to opt out if you want to, but only after you have joined. If you opt out within 30 days you will not lose any money, but after that anything paid into the pension will sit there until you retire or, of course, until you decide to add to it.
There are lots of rules around the pensions, for instance your employer must never try to induce you, or coerce you, not to take the pension. You must have a free choice, but the pension provider should give you plenty of information so that you can make an informed choice. On thing that it is important to note is that your employer will be contributing to the pension as will the tax man, so it may be well worth taking. Remember though, if you decide not to contribute then your employer (or the tax man) won’t contribute either.
At Alpha Law our employment experts can advise on the legal aspects of your pension as well as any contractual issues, however you need to speak to your financial adviser for information on the merits of your particular pension and its worth to you in retirement. One thing you can be sure of is that each pension in the system must reach certain government guidelines.
You can find lots of information, as well as an introduction to pensions from Theo Paphitis by clicking here – Workplace Pensions