Skip To The Main Content

Auto-enrolment: What You Need to Know

  • Blog
  • 31 October 2015

Auto-enrolment: saving for your pension

Most people, no matter how financially savvy they might be in every other area of their lives, find pensions akin to the dark arts. In typical ostrich fashion, some prefer to rather stick their heads in the sand and hope it goes away than confront the truth about saving up for retirement.

Auto-enrolment: What You Need to Know

In an attempt to make us think about the future and how we might provide for ourselves, new legislation was introduced in 2012. Starting from October 2012, every employee has to be enrolled in a workplace pension.

The FSB Pension Scheme for Members has put together a guide highlighting key facts and responsibilities for employers to help implement the new legislation. Employers will be required to automatically enrol workers into a workplace pension who:

  • are not already in a qualifying pension scheme
  • are aged 22 or over
  • are under State Pension age
  • earn more than £10,000 a year (this figure is reviewed every year), and work or usually work in the UK

Larger employers, those with over 250 staff, kicked off the process, with the tiered rollout continuing until April 2017. The timeline for auto-enrolment is:

Fewer than 30

June 2015 and April 2017

Between 30 and 39

October 2015

Between 40 and 49

August 2015

Between 50 and 249

April 2014 and April 2015

Over 250

October 2012 and February 2014

New employers (PAYE income first payable after (31/3/2012)

May 2017 and February 2018

For larger companies, with the infrastructure already in place to handle pension for employees, the legal requirements make little difference. If, however, you are a small business employing staff, the new requirement could seem overwhelming. Planning ahead is the key to making sure you are prepared to comply with the new regulation. The FSB Pension Scheme for Members is an excellent choice for smaller companies, as it offers many of the features and benefits that are normally only available to larger companies with established pension schemes.

FSB Workplace Pensions from FSB

With expert advice and guidance from a leading provider, it's one of the most popular FSB Member Benefits.

Find out more