How will the 2014 Budget help auto enrolment succeed?
Yesterday saw Chancellor of the Exchequer George Osborne deliver his 2014 Budget speech, with a number of key changes to savings, pensions and personal tax allowance being unveiled. Some of the most radical changes were those surrounding pensions however, with the aim being to help savers at every stage of their lives.
Mark Paraskeva, CEO of IRIS SME Division commented on the announcement, saying: "We welcome the 2014 Budget changes to pensions announced by Mr Osborne. As every business in the UK that employs someone is now required to automatically enrol their staff into a workplace pension scheme, the value and flexibility of individuals pensions pots, so critical for retirement, has now been improved in favour of the employee. This is hard earned money from both employers and employees, and now when retirement day comes, all remaining tax restrictions on how pensioners have access to their pension pots will be removed. Employers will have the freedom to cash in as much or as little of their pension pot as they want, removing the need to buy an annuity.
Businesses are having to bear the expense of meeting The Pensions Regulator (TPR) regulations by implementing auto enrolment. For many, this has taken months of planning, investment in new systems, and development of new processes as well as the direct pension contributions. So it seems absolutely right and fair to ensure the benefit is wholly directed to the pension saver.
In the long run it will be better for everyone involved if employees' and employers' contributions can go further for the employee in retirement. The more benefit an individual can see in their pension scheme, the more likely they are to remain enrolled and not opt-out, helping to ensure the ultimate success of auto enrolment."
Have you started preparing your organisation for auto enrolment? IRIS is offering a range of solutions to help make achieving compliance as simple as possible for businesses. Visit the IRIS Auto Enrolment Insight page to see how your business could benefit.