Auto-enrolment pension

MissSarah1972

I bet this new auto-enrolment pension will put a stop to a lot of pay rises in certain companies who never had to pay into a pension for their staff.

As I read it the employer will contribute 1% in the first year rising to 3% over the next few years.

Taking my old company into this I know that as I got 0% pay rise in the last two years I was there they wouldn't be very happy giving me 1% in a pension and I feel this could hurt more staff then help them.

What are your thoughts?

pinkshoes

I think it's a great idea!

So many people are far too reliant on a state pension, so although they might feel the pinch now, at least it should hopefully give them a more comfortable retirement.

I'm in my early 30s, and I imagine that anyone my age that doesn't have their own decent private pension will be expected to work until they drop!

MissSarah1972

pinkshoes wrote: »

I think it's a great idea!

So many people are far too reliant on a state pension, so although they might feel the pinch now, at least it should hopefully give them a more comfortable retirement.

I'm in my early 30s, and I imagine that anyone my age that doesn't have their own decent private pension will be expected to work until they drop!

Do you think if an employer is forced to put in 3% it may have some effect?

pinkshoes

MissSarah1972 wrote: »

Do you think if an employer is forced to put in 3% it may have some effect?

Yes, it will have an effect, but given most pay rises have been well below 3% in recent years, then it will be the employer that is hit in the pocket first, followed by the employee in latter years due to smaller pay rises, if any.

BUT... I do still think it is a step in the right direction, as it's rather foolish to rely on a state pension, particularly those that aren't going to own a property by the time they retire.