This April will see the start of increased pension contributions for employers and their staff. The total minimum contribution will rise from 5 per cent to 8 per cent.
Increasing minimum contributions should be a straightforward task for employers, but there are checks they will need to make with their pension and payroll providers to ensure their staff are receiving the correct payments.
The vast majority of employers are successfully meeting their duties, however, The Pensions Regulator (TPR) will take action where an employer is non-compliant, including failing to maintain the correct contributions.
TPR research shows staff are continuing to save more. Less than 2 per cent of staff in micro, small and medium sized businesses asked to leave their pension as a result of last year’s increases to minimum contributions.
You can find more information about ongoing employer duties and the increase in minimum contributions on The Pensions Regulator webpage.
For further information about how we can help you and your business, speak to a Beavis Morgan adviser who will ask the right questions relating to your individual situation, give practical advice on the best approach towards planning for retirement and mitigating inheritance tax and, if necessary, introduce you to an Independent Financial Adviser who will assess your situation and inform you of the pension protections best suited to you.
Contact Steve Govey or your usual Beavis Morgan Partner.