Pensions Drawdown. Do not delay on pensions

This week pension’s minister Steve Webb has confirmed the Government will delay automatic enrolment for small employers until after 2015. Details of the revised schedule will be published early next year. Webb said: “We will be going ahead with auto-enrolment as planned and I can confirm all businesses remain in scope. We have however decided to extend the current five year implementation period so that small businesses will not have to start enrolling their workers until the start of the next parliament. Never the less these revised plans will still result in more than half of all workers enrolled before the end of this parliament.”

Legal & General pension’s strategy director Adrian Boulding, who was part of the three man ‘Making automatic enrolment work’ review commissioned by the DWP last year, says the delay is a “huge mistake”. He says: “Demographically this is completely the wrong thing for the Government to be doing. “The point of getting people to save for their retirement is that the baby boom generation are still in work, so this is their opportunity to save for retirement. “If we delay, defer or miss this opportunity then the costs for providing pensions for that big generation are being landed on the much smaller generations following them. It is a huge mistake.”

As you already know Enable of Bishop’s Stortford don’t like to see any delay on signing up for your pension. If you need Independent Financial Advice on what is best for your pension provision do not hesitate to call reputable IFAs of Bishop’s Stortford Enable.