Pensions and the rules surrounding them have changed extensively in recent years. The introduction of auto-enrolment – and an array of changes to the taxation of personal pensions – are symptomatic of this. Such upheavals have created a variety of challenges for payroll providers.
A further pensions change on the horizon is a reduction in the age at which employees are automatically opted into a workplace pension. Under government plans to expand the practice of ‘auto-enrolment’ – the automatic enrolment age will be reduced to 18 from the current 22.
The timescale for this proposed alteration to the existing rules is not immediate. In fact, it is not until the mid-2020s that ministers plan for the change to be brought into effect. The government’s intentions aren’t without controversy, however. Whilst auto-enrolment has been praised for encouraging a culture of saving – it has also been criticised for increasing costs to businesses, meaning that possible extension of the scheme has undoubtedly caused concerns.
Regardless of the merits and demerits of the policy – at Dataplan, we’ll ensure that, if and when the time comes, the change is actioned in-payroll in a way that ensures 100% compliance for all of our customers. Indeed, our dedicated Pensions Team contains a high level of auto-enrolment expertise, for which administering legal changes is no match.
Meanwhile, as with other legislative amendments – we’ll do everything in our power to ensure that clients are fully up-to-speed with the ‘small print’ of any change to the start age before it kicks in.
We at Dataplan pride ourselves on our long-term focus – and always being conscious of legislative changes in the pipeline and the impact on our customers.
To a chat to a payroll hero about auto-enrolment changes today, give us a call on 03331123456.