Many businesses and their employees are aware of the legislation surrounding auto enrolment for workplace pensions. Indeed, the ‘staging’ dates for bigger companies have already come and gone, so quite a few lessons have been picked up along the way. Perhaps your own date still lies ahead, but you’ve talked to your IFA and identified a provider? It would be easy to think you’d done the hard work. But actually, the real issues may still lie ahead.
There have been numerous articles in the press regarding the reduction in pension contributions that high earners can make in the coming tax year (2016/17), without creating a personal tax charge.
Back at the beginning of the 20th century, when the first old-age pension was introduced in the UK, there were 10 people of working age for every person drawing their retirement income. Today, that ratio is 3:1 and it’s set to drop even further to 2:1 by 2050.
"I'm sorry? You haven't heard about Automatic Enrolment?
Taxation becomes seemingly more complex with each passing year but with good financial and tax planning advice and “joined-up thinking” you can optimise your position and make incremental changes which add substantial value.
Don’t panic about your pensions auto-enrolment responsibilities, just a little planning ahead will keep you right!