With stakeholder pensions due to come into effect in less than a month employers up and down the cou...
With stakeholder pensions due to come into effect in less than a month employers up and down the country, both large and small, are busy preparing for the introduction of the savings alternative to the state pension.
The Government-led initiative begins on 6 April from which date employees working at a company where a stakeholder scheme is in place will start to make contributions to their pension. Employers who haven't introduced a scheme by that date will have six months to get one in place or face the risk of being fined by the Government.
Insurer Legal & General estimate the Government could be some £4bn better off - the benefit of small companies failing to get stakeholders up and running before the 8 October deadline.
L&G spokesman Adrian Boulding said: "Small employers have got to get their act together if they don't want to fall foul of the stakeholder legislation and end up paying part of this huge fine to the Exchequer. This figure should act as a wake up call to employers."
The figures, based on a survey conducted by Taylor Nelson Lofres for L&G, estimates that more than 424,000 firms in the country with between five and 49 staff do not currently offer, or plan to introduce, a scheme.
However, the good news is that 31% of the firms surveyed said they would contact an IFA for further information while a smaller figure, 29%, said they would contact a bank.
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