A Pension Evolution (Revolution) ?

Ignoring the Budget announcement for a moment, the largest change in pension legislation for many

decades is already coming into effect. While we are told we live in a democracy, it hardly comes across as democratic when a Government can create a law that forces employers and employees to set

up and pay into a company pension. This development goes back to 2006 when serious concern was raised about the fact that a large proportion of the working population were saving little or nothing

towards their retirement needs. The Government could read the handwriting on the wall. They introduced the Pensions Act 2008 which established the principle of compulsory enrolment, i.e. that all companies had to set up a company pension and that all employees would be required to join it – with both the employer and employee being required to contribute to the employee’s pension. The Pensions Regulator is the governmental body responsible for company pensions, and they are the ones responsible for ensuring that all employers set up these Auto-Enrolment Pensions.

Note: This law applies to employers and employees but not to those who are self-employed.