The implementation of NEST (the National Employment Savings Trust) has begun and all employers should be aware of their responsibilities and obligations in this respect. Also known as Auto-enrolment, employers have an obligation to set up a company pension scheme for its employees, as well as contributing on their behalf. For practices or business of less than 30 employees, implementation is not necessary until April 2018.
Employees will be required to contribute 1% of their pre-tax salary, rising to 5% by October 2018, with employers also contributing 1%, rising to 3% by 2018. Membership is applicable to anyone aged over 22 and earning more than £9,444 per annum. This is the latest Government scheme to boost individual provision for retirement, with the incentive of additional employer contributions enhancing an employee’s retirement benefits. The majority of our clients will be self-employed practitioners and/or employers, so this new scheme is likely to be seen as just another financial cross to bear.
For more information on workplace pensions, personal pensions, SIPPs and specialist retirement provision, please free feel to contact us with your specific concerns.