Pension Providers

A TATA Truck at Work

A TATA Truck at Work

PENSION PROVISION TO BE COMPULSORY BY 2015

Small Businesses with one Employee or more must comply.

Yes its true.
The Government has decreed that by 2015 everyone employed by a company, even if they are the only person there, must have a pension scheme.
That means that only the self employed and contracted workers will be exempt.

Two Choices

All employees will have the option to, either, make their own arrangements or enter a government scheme.
This is where TaTa come in. This Indian company known best for its car and truck making activities has won the contract to set up and administer the
scheme.
When we say “won” we say it with tongue in cheek as they were actually the only bidder still left in the running. Everyone else had withdrawn. TaTa already have several interests in the UK including Corus—the former British Steel and Jaguar/Rover cars.

TATA to Pensions

The new scheme will be known as the National Employment Savings Trust or NEST. Come on now, I kid you not.
Introduced in stages the payments are expected to finally account for a payment of 8% of net salary. One part of this will be paid by the employee and the remainder by the employer.

Updating

I have no doubt that the pension situation will change many times in the future and for this reason we will be revisiting the subject with news articles and an in depth report as this happens. Visit the 2014 update here

Alternatives

For those who want to invest in alternatives to the NEST scheme or to find an alternative to annuities for part of their ” pot” visit the article on Gold Bullion and other alternatives.

 

www.setupandgrow.co.uk

 

Tags: , , ,