Pensions reform will change our world for ever. From 2012, all employers will have to auto-enrol the vast majority of their employees into a pension scheme and pay a pension contribution in respect of them.
This is going to cost employers time and money. Many will try to pass these costs onto employees with lower pay rises and possibly job losses. But for the first time a lot of UK employees will be saving for their retirement. Sounds fantastic doesn’t it? But sometimes we’re in danger of forgetting that 2.6m people are already doing a very good job at saving for their retirement within contract-based schemes. And we can’t afford for the new in-coming rules to disturb this saving pattern. Those employers who operate GPPs should be allowed to keep them for current and new employees. Otherwise...
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