By Daniel Hunter
The CBI has commented on the launch of pensions auto-enrolment, which begins today (Monday). Every employer has a new legal duty to automatically enrol certain workers into a qualifying workplace pension scheme and make contributions towards it. The duties will be staged over six years, starting with large employers.
"The UK needs a renewed focus on long-termism if we are to secure sustainable private sector growth and rebalance the economy," John Cridland, CBI Director-General, said.
"That means taking bold, visionary action now to address the problems we expect to face in the future — and few challenges are more pressing than rebuilding a culture of saving. Boosting pension saving is essential to caring for our ageing population and increasing investment in our economy.
“Auto-enrolment is the right way to meet the challenge. The 1st of October marks a new dawn for pension saving, with many millions of employees being given the opportunity to save towards a pension and benefit from an additional contribution from their employer. The change is rightly being phased over many years, to ensure it remains affordable for businesses in these tough times.
"The business community is committed to helping employees to achieve a good income in retirement. Auto-enrolment will encourage them to think long-term about their finances to achieve this goal."
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