This figure comes from a Sage UKI study, which also found that 27 per cent are still in the dark about what the changes mean for them and their retirement. A further 25 per cent have not received any information on the changes to workplace pensions, equating to as many as 300,000 UK businesses.
Considering that 11m people in the UK need to be enrolled onto a workplace pension, it’s amazing to find out that 6.1m still have no clue. When workplace pensions and auto-enrolment were explained to respondents, over three-quarters stated they agreed with the changes being introduced. However, there is clearly an education and awareness gap that needs addressing. “The way we save for retirement has transformed in recent years, but the lack of awareness about the change is a major concern,” said Lee Perkins, Managing Director, Start-up and Small Business Division at Sage UKI. “The fact that there is such confusion and ambiguity surrounding the term means the language surrounding workplace pensions needs to be looked at and considered carefully. “The auto-enrolment crunch time is fast approaching. If you’ve not heard anything and have questions about what it means for you, you need to head to the Government website. This is something that will affect the majority of people in the country and will have implications for your retirement so it is vital you are up-to-speed on the changes.” In 2014, businesses with between 60 and 350 employees will reach their staging date and begin to automatically enrol any eligible jobholders meaning as many as 50,000 firms will enrol their employees. Progressively smaller and smaller businesses will then be required to offer a workplace pension to their employees in a phased rollout known as staging. By Shané SchutteShare this story