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Finance and Accountancy Briefing

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Small or medium sized enterprises urged to prepare for pension changes

Overview

According to a new survey by Sage, 46% of the 1,500 small business owners questioned do not currently offer a company pension scheme for employees.

It also found that a third (33%) are unaware of their responsibility to provide a qualifying pension scheme as a result of the changes, while 54% of business owners mistakenly believe the Pensions Act will have no impact on their business.

From 2012 employers will be required to enrol staff automatically into a qualifying pension scheme and business owners must contribute a minimum of 3% of the member’s salary.

Where the employer does not provide such a scheme, employees must be enrolled into the new National Employment Savings Trust (Nest), a simple low-cost pension scheme that is being introduced by the government.

To read the full paper, please download it here.

Tags: SME, Pensions, Small Businesses.

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