By Claire West
Auto-enrolment requires significant forward planning, according to BBS Consultants & Actuaries
Small to medium sized enterprises are being urged to act now to avoid the potential pitfalls caused by pensions auto-enrolment.
Starting from October 2012 UK employers will be obliged to automatically enrol employees into a qualifying pension scheme.
Although the coalition government has said it will carry out a review of the auto-enrolment procedure, the signals are that auto-enrolment will go ahead.
Peter Bainbridge, director at leading independent pension advisers BBS Consultants & Actuaries, said: “For years the Government has skirted round the issue of compulsory saving for retirement to such an extent that there is now an entire generation of workers who are making little or no provision for their old age.
“If for no other reason auto-enrolment is to be welcomed, but businesses need to recognise that these significant changes to their responsibilities as employers are complex and that comprehensive forward planning will be essential to ensure the process is carried out correctly from both a financial and human resources perspective.”
To help SME companies with their forward planning for auto-enrolment BBS Consultants & Actuaries has produced a free downloadable guide for employers. For more information go to www.bbs-actuaries.co.uk