We all want to grow old, retire and enjoy our last few years in financial comfort. However, that luxury costs money that the country cannot afford.
So to help us help ourselves the Government has now set out its plans to introduce 'automatic enrolment' into workplace pensions from October 2012.
For the first time employers will be legally required to make pension contributions by enrolling eligible workers into a qualifying workplace pension arrangement.
Eligible workers will be those employees aged between 22 and state pension age and earning above the income tax personal allowance (£7,475 in 2011/12).
Employers will have an ongoing duty to maintain qualifying pension provision for workers who are already members of other qualifying schemes.
Despite calls for small employers to be exempted, the enrolment requirements will apply to all employers, regardless of size.
What does this mean? Employers should begin their preparations for these new obligations by looking at their existing pension obligations, in addition to their other contractual benefit commitments.
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