I have just found out as a employer from 2012 I have to set up a company pension scheme and contribute 5% of staffs salary to it.The staff do not have to contribute to it if they dont want to.Can someone tell me how the feck i am supposed to find this money ? Christ almighty it's hard enough running a business as it is let alone having more expenses thrust upon you.I may as well sell up or stop trading and find a employed job and let someone contribute 5% of my salary.Can the last person to leave this poxy country turn out the lights.
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This country does sod all for small businesses, and isnt it their fault the pension fund is running out in the first place!??
Not sure what the problem is: as it comes in, in three years' time, just limit pay rises between now and then to reflect the increased amount that you contribute in pensions. At the end of the day, it has to be good that your people are provided for in their old age, right?
Some employers actually advertise their wages including superannuation so a job advertised at $50,000 would actually be $45,500 BEFORE TAX and then another $4,500 tax-free paid into super.
The key thing with Superannuation is that it FORCES individuals to have a private pension fund which they can access when they retire at 60 - you can't touch the money until you hit retirement age - which relieves stress on the public pension sytem.
For employers, it does not mean that you pay wages PLUS super, it just means that you pay super as part of the wage package so if you want to pay someone $100,000 per year then you offer them $91,000 gross and then $9,000 PA as superannuation.
It took a little while here for employers to accept it but there is broad agreement here now that it is an excellent idea because it forces people to have a nest egg for retirement which even for lower-paid workers should add up to at least $200,000 plus if they have worked full-time between 18-60.
This money then gets pumped back into the economy when people retire and get to spend the money.
There is no way that the Tories will change this policy when they come into power, if anything they will increase the levy to 10% to get more people off the public pension.
http://www.thepensionservice.gov.uk/pensions-reform/act2008.asp
It seems you should only(?) be paying 3% but I don't really understand it all. I just know I pay a ton every month to Legal & General for some pension because my work is too tight to pay...
Last week the goverments advisor for pension contribution suggested a retirement age of 70, the minister responsible said this would be necessary.
How can anybody, employers , and employed possibly provide a decent pension scheme that people can base there retirement
Too be honest I think that whoever is in goverment will have to tackle this as soon as possible.
At present neither the country nor the employeer can afford this.
I think the state pension will be means tested in less than 5 years, phased in after say 2020. If they did this then perhaps a decent pension might be paid on a sliding scale.
Of course that means that people with a private pension would largely miss out from there state pension, but unless there is a massive hike I cannot see the sustainability of this scheme.
It is the same with Child allowance, universal benefits although great in theory are non sustainable unless tax increases, and that is on top of the other tax increases that will follow to have bailed out the banks.
People like me who work for the public sector as well had better have a rethink, no retirement at 55s/60s. Hard choices have to be made, whoever is in power, but the politicians do not want to tell you that!