Are you getting ready to implement your workplace pension or are you sticking your head in the sand.
If you have received your staging date you need to have your new pension scheme in place by this date. It's important so won't incur fines and penalties. Larger companies will be staging at the moment with smaller employers to follow over the next year or so.
Be Prepared - don't leave it to the last minute
The recommendation is to get the ball rolling around 9 months previous to your staging date so your pension scheme is in place. Also consider that a lot of pension providers will be very busy so it may take a little longer for them to open your account.
How much does a workplace pension cost?
The minimum contributions for Employees and Employers are set to:
Before - 05/04/2018 = Employee = 1% & Employer = 1%
06/04/18 - 05/04/2019 = Employee = 3% & Employer = 2%
06/04/19 - onwards = Employee = 5% & Employer = 3%
How to work out your pension contributions - online calculator
Setting up the scheme and charges
It can be a minefield to find out charges for setting up your pension scheme as an Employer and the ongoing scheme maintenance charges. Also, you need to take into consideration the ongoing running costs for employees for their pension contributions and investments.
We strongly advise you to contact a regulated Financial Adviser for further information and check out the Pensions Regulator website.
The content of this article is provided for information only. While all reasonable care has been taken to ensure that the information in this article is accurate, no liability is accepted by Bright Chilli Limited for any loss or damage caused to any person or business relying on any statement or omission in the content of this article.
Image from unsplash