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Auto-enrollment Pension
andrew sutherland
Posted: 25 September 2012 11:34:13(UTC)

Joined: 28/10/2009(UTC)
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Most probably this has been already answered several times over, but will I be auto-enrolled into a pension, even though I have one with my place of work currently?


Posted: 25 September 2012 15:22:20(UTC)

Joined: 10/02/2012(UTC)
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in a nutshell, (because it can be uber complicated), if you are currently in a company scheme, then that scheme has to meet a minimum criteria to be confirmed as a "qualifying" work place pension scheme. (against the new criteria being rolled out as we speak). In my experience, most do, and those that do not need nothing other than minor tinkering.

So as long as the above is satisfied, then you should'nt see any difference. As an aside, what might be instructive is to ask your HR dept at work what is going on. I am prepared to have a side bet that they are not that sure!

1 user thanked Roydo for this post.
andrew sutherland on 26/09/2012(UTC)
jo soap
Posted: 25 September 2012 22:03:15(UTC)

Joined: 21/01/2012(UTC)
Posts: 2

My son has just been erolled in a works pension and it appears that his company has used a financial adviser with himself and i take it the rest of his colleagues paying the commision to this IFA firm with substantial amounts being taken out of monthly payments over the next 3 years.

Considering HE has had no `advice` and indeed has not been so much as contacted by any advisor can anyone say if this is a common practice.

The `blurb` shows that over the life of the policy `costs` can detract from the pension pot as much as £150K which would be more than he had paid in. His firm will not facilitate him paying into a SIPP nor let him choose his own funds, Is it any wonder that our young are put off taking up long term savings. Are there any financial services we can trust ?
Posted: 26 September 2012 11:32:23(UTC)

Joined: 03/01/2012(UTC)
Posts: 2

Until the go live of 1 October, unless a company has had permission from the Pensions Regulator to bring their automatic enrolment date forward, the only way to automatically enroll staff is through their contract

Even so, it can't be compulsory so your son should be able to opt out

Even if charges are taken from your son's fund, the benefit depends on the amount of his pay that his company are contributing on his behalf - if they're paying 10% of pay, then he's still likely to benefit even after commission is taken
jo soap
Posted: 26 September 2012 12:41:37(UTC)

Joined: 21/01/2012(UTC)
Posts: 2

Yes he is able to opt out but is a sensible lad. His firms commitment, i believe, is only 5% of salary and not knowing how many employees took up this offer, though i guess it would be the majority, i can`t see how the IFA`s contibution towards advice can be so lucrative/costly.... surely a flat fee to the company would be more fair as they havn`t had any contact with the staff or given any advice to them.
I would like to know if this is standard practice ?
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