Why are pensions important?

Hi. So today’s top tip from our 52 Top Tips for Employers is all about pensions.

Employers are now obliged to automatically enrol all eligible employees into their company pension scheme. Now, both the employer and the employee must contribute to that pension scheme unless the employee then opts out. 

This is a real pain for employers, especially the smallest of employers and those who already know that their employees don’t want to be part of their employee pension plan because they still have to go through the process of setting up the plan, registering it with HMRC, and then offering it to the staff and automatically re-enrolling the staff every three years. 

Unfortunately, it still needs to be done but it’s a great benefit for those who decide to take it up.