It’s no secret the Government have been emphasising the importance of workplace pensions, encouraging individuals to pursue this route to ensure their long-term financial security. Eager to assess how auto enrolment pensions are panning out in real terms, a review of the current state of affairs is now being conducted.
Announced in mid-December, the review is seeking to establish how the new policy is progressing and in what new directions it can go. The Department for Work & Pensions (DWP) suggest it has been well received and indicate that nearly seven million employees have been enrolled to date. This number is expected to grow considerably in the coming years, with more employers and employees participating.
However, like any new scheme, it will need monitoring closely to ensure it runs smoothly and benefits everyone. The review is designed to get a better insight into the practical implications of the auto enrolment pension scheme in order to iron out any kinks that may be present. Those who hold multiple jobs and those who are self-employed are groups the government are likely to be paying particular attention to.
In early 2017 the DWP will outline specifically who will be involved in conducting the review. As well as DWP representatives, external pension specialists will be involved with a view to providing expert opinion and industry experience. They will seek to look at current thresholds, age criteria and establish precisely how auto enrolment pensions match up with National Insurance contribution rates. Ultimately, this should help ensure a more cohesive pension system for all.
If you want to find out more about how auto enrolment pensions impact on you or your business, contact us.