Pensions Reform - Everyone will go in

Mudd14

paulwf wrote: »

Thanks for the info. I'm not sure if you can answer this but I'll ask it anyway...

Who gets to decide the level of risk v return? With my personal pension I got to take a questionnaire and then that helped to decide the level of risk. I choice the mid-level option and I was advised that generally 10 years before retirement it is best to move it to the low level risk category.

Basically is this one absolutely huge government administered scheme or will it depend on who I choose to administer pensions for my company?

I'm concerned that employees will ask questions about it I'm not qualified to answer, plus if I choose a dud scheme as it is more or less compulsory the employee may be able to take action against me. At the moment I have a pension scheme bolted on to my business account and I can just tell employees they are better off finding their own scheme.

I am sorry Paulwf but I am unable to comment on how providers will administer the scheme as I am not sure if they know yet!

As far as NEST is concerned I'd imagine it would be a low risk as I dont think the governement could risk losing every bodies money!

You will have a choice on who can adminster your scheme, if you current one complies with the individual obligations of the pension reform then you can continue on that. If not switch to a provider that does, if you cannot find one that suites you, you will be lest with NEST. I beleive no pensions providor can charge more that 1.5% in annual admin costs.

I am sure you could tell employers that they will need to seek their own advice or speak to your providor for advice.

Debt_Free_Chick

The current rules for joining a personal pension/stakeholder will change. If an employer wants to use an alternative scheme to NEST for auto-enrolment, then the alternative needs only to issue certain information to the employee. The employer can then auto-enrol into the alternative scheme, without the employee completing an application form/supplying "evidence" etc.

I posted the link to NEST in an earlier post - here it is again.

Also, the Pensions Regulator has more information

Those sites iron out many of the uncertainties/wrinkles identified here