Is a Delay to Occupational Pension a good thing?

Posted by The Web Clinic
Oct 27 2011

I run my own business and have been worried about the new occupational pension auto-enrolment rules which are being introduced from next year. However I have recently heard that these legislation changes will be put back as government ministers are worried that the economy may be affected. This is something I have believed would be the case for some time, and I’m not surprised that they are considering a delay. The new rules will mean that employees will have to pay 4% of their salary into a designated pension plan and their employer would have to pay in a further 3%.  There would be an automatic enrolment structure which would have to followed by the company and reported back to the Pension Regulator. This would be an additional cost to firms and the government now realise that all these costs, along with the fact that workers will have less disposable income, would have a large affect on the economy. At a time when UK growth is stagnant and not showing potential to increase over the next few years, it would be wise to delay these reform measures until the economy is in a stable position.

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