Employees 'set to benefit' from new pension reforms


Employees 'set to benefit' from new pension reforms
The 2012 pension reforms will see the majority of employees benefit from auto-enrolment into occupational pension schemes, the government has claimed.

According to a study conducted by the Department for Work and Pensions, over 95 per cent of people will receive more back than they put into the scheme.

The Savings for retirement: implication of pensions reforms on financial incentives to save for retirement document also states that 70 per cent of savers can expect to receive twice as much as they contribute, Employee Benefits relays.

Pensions minister Rosie Winterton said: "This report makes clear that most people can expect their savings to make them better on in retirement."

She added that the study shows the government was "absolutely right" in its decision "to introduce auto-enrolment in 2012".

A spokesperson for ClickAJob advises that wherever possible employees should set up their own pension scheme as an additional safeguard.

"It's not just allowing for uncertainties in the future, it's a good way of forced saving for yourself too," he says.

"With your own portable pension scheme - on top of any plan your company may offer and the government itself - you are unlikely to have any problems with funds running short when you really need them."

"Plus of course, it's your money - you're the one making contributions - and you can use it for emergencies if ever they happen," he concludes.

Meanwhile, new research conducted by PricewaterhouseCoopers has discovered that 90 per cent of firms are concerned that they may be asked to increase their contributions to their pension schemes at a time when money is tight.

Related categories: HR / Recruitment.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

See also:

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure