Pensions Reform


Pensions Reform will change the way that we save for the retirement that we want. We can help you navigate your way through the new pensions landscape.

•    Currently around 7 million people in the UK are not saving enough for retirement
•    The government wants to make it easier for you to save for your retirement
•    Between 2012 and 2016, you will have to be enrolled in a qualifying pension plan and make contributions to it

The government hopes to attract 6 to 9 million more employees to contribute towards a workplace pension from 2012. Will you be ready for these new reforms?

•    Most people will be enrolled in a pension scheme
•    There are likely to be increased costs for employers
•    Employees will have to make minimum contributions

What Pensions Reform means for your company


The proposed legislation, due to be introduced in 2012, will have wide ranging effects across every field of business. You can prepare now by gaining a thorough understanding of the changes and their potential impact upon you and your company.

Step 1: Consider the impact of automatic enrolment
Between 2012 and 2016 all employers will have to automatically enrol all eligible employees in a qualifying pension scheme and make contributions to their plan.

Step 2: Identify the financial impact
Pensions Reform is likely to have a financial impact on your company. Start preparing for this now.

Step 3: Consider your options
If you are faced with significant extra costs as a result of the legislation, there are a number of options you could consider. Do you have the resources and time to administer this yourself

Step 4: consider the penalties
As you will be aware failure to comply with any government requirement will have stiff costs and penalties including fines.

What Pensions Reform means for you as an employee

Pensions Reform is likely to have an impact on how you save for your retirement. Here are some questions to consider.

Are you eligible for auto-enrolment?

1.    You aren’t already an active member of a qualifying scheme
2.    You’re aged between 22 years and the State Pension Age
3.    You earn above the earnings threshold for automatic enrolment (£7,475 in the 2011/12 tax year)

Do you have qualifying earnings?

Contributions are payable on qualifying earnings between the minimum threshold of £5,715 and an upper limit of £38,185 in current prices.

Are you contributing enough to your pension?

Compulsory contributions are going to be phased in, rising from 0.8% initially to 2.4% in October 2016 and 4% a year later. This is to help employers and individuals adjust to the additional costs gradually.

Radical Financial Services are fully qualified to give advice and arrange a solution that fits you and your company, Please dont hesitate to contact us if you have any questions.

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The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
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