October 1 marked the launch of pensions auto-enrolment, a new system that will give UK employers the legal duty to automatically enrol certain workers into a qualifying workplace pension scheme and make contributions towards it.
The duties will be staged over six years, starting with large employers.
UK workers that are over 22, not already in a pension scheme and earn more than £8,105 will be enrolled automatically.
John Cridland, CBI director-general, commented on the system: “Boosting pension saving is essential to caring for our ageing population and increasing investment in our economy. Auto-enrolment is the right way to meet the challenge. Today marks a new dawn for pension saving, with many millions of employees being given the opportunity to save towards a pension and benefit from an additional contribution from their employer. The change is rightly being phased over many years, to ensure it remains affordable for businesses in these tough times.
“The business community is committed to helping employees to achieve a good income in retirement. Auto-enrolment will encourage them to think long-term about their finances to achieve this goal.”
For more information visit – www.direct.gov.uk/workplacepension/