Auto enrolment

Compulsory pensions for your staff – yup even if you just employ a nanny!

 

Three things you need to know

  • If you employ anyone who earns more than £10,000 a year you need to sort this out
  • This year you'll have to pay 1% towards staff pensions and it will rise to 3% from April 2019
  • If you employ 10 people on £35,000 a year, this would cost you £2,918 this year, rising to £8,753 from April 2019!

 


 

I'm a boss, what do I have to do?

From 2018 every employer will need to offer staff a pension. Basically no-one is saving up enough and we've all got the cheek to be living for longer! So the Government has stepped in and gone as far as they dare towards making this compulsory. 

Lovely for employees. Another admin headache for small business owners. 

 


 

What's the damage?

First you'll have to pay into your employees' pension.  It starts at 1% from you and goes up to 3% by 2019. 

This can be on what is called Qualifying Earnings – that's the amount in between £5,876 and £45,000 per employee. 

As well as the contributions from you, there may be extra charges to pay for an accountant or a financial adviser. 

The precise fees depend on who you pick. NEST – the simple Government option – carries no fees for the employer. Aviva – Boring Money's pick for its staff – costs the employer about 0.3% a year. Have a look at our Best Buys pages for info. 

 


 

Still stuck?

Our three-page Guide to Auto Enrolment for Employers answers those tricky questions you may have.

 

Help me!

 


 

Who we rate for small firms

For anyone who has just one or two employees, it's hard to look beyond NEST. 

If you have a small business of people who work at computers, appreciate a digital option and might also take an interest in their savings, then we like True Potential.

For general support and solid brands, have a look at Aviva, The People's Pension or Standard Life. 

 

 


 

Watch

In the third video of our Auto Enrolment X Factor vlog series, Holly runs through our top rated providers - who would suit your company's needs?