Auto-Enrolment Company Pension Schemes is coming soon and businesses with more than 5 employees need to know about it.
The government would like everybody to save for their retirement through recognised investment savings schemes. The most tax efficient way of doing this is to either, put investments into an ISA over a long period of time or to put regular contributions into a personal or company pension scheme, or both if affordable. The tax position of both schemes and qualification for auto-enrolment will be explained by your adviser.
David Wherrit of Investment4all explains:
“Depending on how many employees a company has and that those employees are between the ages of 22 and state pension age, it is a requirement by The Pensions Regulator, to have set up a company pension scheme by a specified date [known as Staging Dates] and the responsibility to set up the scheme lies with the Employer.
“A Fixed Fee, Consultancy & Implementation Service is available from an Independent Financial Planning & Advisory Service, but please be aware – investments can go down as well as up.