DSH Financial Services Supports the Government’s Latest Pension Plan

The Government’s radical shake-up of the UK pension system will hopefully help reverse an ever-increasing employee savings shortfall, according to DSH Financial Services Limited.

The Workplace Pensions Reform, which comes into effect from October 2012, makes employer contributions to staff pensions compulsory.

It is hoped the legislation will halt the decline in the number of both company and private pension schemes held by UK workers. The most recent Office for National Statistics figures for pensions released in July 2012, show that just 48 per cent of employees are currently paying into a company pension, the lowest level of uptake since modern records began in 1997.

This has created a pensions shortfall for hundreds of thousands of employees – with their state pension provision falling well below the level of pension regarded as necessary to be able to live on.

Ian Holyoake, Financial Advisor at DSH Financial Services Ltd in Maidstone, said: “Under the new rules, employers will carry a greater part of the burden of ensuring employees save for their retirement.

“Adoption of a suitable scheme is being phased in from October 2012 to February 2018 and all businesses will need to comply regardless of size, with larger employers affected first.

“It is important that all employers should review any existing staff pension arrangement to establish whether they meet the new requirements. Those businesses without qualifying occupational schemes will need to set one up, which can take up to three months.

“Although for many businesses, the deadlines appear a long way off, we recommend employers take action sooner rather than later in order to avoid being hit with significant penalties for missing the automatic enrolment deadlines. Many employers are unsure of the correct actions to take and we strongly advise them to take professional advice on how these changes will affect them and their business”.

For assistance on the above or any other pensions matter, contact Ian Holyoake or Stefan Wisniewski in Maidstone on 01622 213973.

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