Small businesses confused with their pension responsibilities

News


12 Jan, 2016

Small businesses confused with their pension responsibilities

The Federation of Small Businesses (FSB) have posted the results of a survey which indicates that firms of that size have no idea what their responsibilities are when it comes to offering pension schemes.

All employers are being advised about their commitments, partially due to a major advertising scheme by the government, which state that anyone who earns more than £10,000 a year and is over the age of 22 must be offered a pension plan. Furthermore, employees need to be automatically enrolled on these schemes, with 5.4 million people already being included automatically since 2012.

However, the FSB’s poll shows that 45% of those firms were unclear about the regulations, with 25% of those surveyed claiming that they were worried about their future due to additional costs. The total amount of small establishments that the government’s rules are affecting amasses to over a million.

There is no respite for companies either, with Lesley Titcomb of the Pensions Regulator telling the BBC that 100,000 employers need to start enrolling their workers within the next 3 months. Her advice for them is to “start early, and make a plan” so that firms don’t reach the deadline point with no procedure in place.

With confusion still surrounding the situation for businesses, the FSB have advised employees that they should be alert to the changes in the next few months to determine whether they are being enrolled upon the appropriate structures.

If you're concerned about your pension and want your future to feel more secure, get in touch with deVere Group today to see if our pension plans suit your needs!