The Auto Enrolment Overview

The Auto Enrolment Overview

Visit the Pensions Regulator website for the authoritative guide.

Millions of people are not saving enough to have the income they are likely to want in retirement, and whilst life expectancy in the UK is increasing, people are saving less into pensions.

In the simplest language possible, we are going to try and address the key issues for you. Below here are some ‘Quick-fire’ Q&A’s for you, but to understand how it will affect you, your company, and for focused guidance, you will need to follow the section below the tabs.

Questions and Answers:

Why is Auto enrolment being brought in ?
Essentially, everyone is living longer.

Following retirement, men are living 50% longer on average than just 30 years ago and women are living over 30% longer.

By 2050, those figures are projected to increase to

71% and 55% respectively.

In addition, there are more of us reaching retirement age, and somehow, we all have to pay for it!

What is the Auto enrolment process ?

PLEASE BE AWARE: The process for your business can take many weeks to complete!
TO FIND OUT HOW to complete the declaration of compliance, please go here

Who is affected ?
Everyone! – from 22 to Statutory Pension Age.

So ALL employees ordinarily working in the UK, within that age bracket, with qualifying earnings in excess of £10,000pa – it applies to them,

and therefore YOU!

Employees outside these parameters can also ‘opt-in’ under certain circumstances.

When does this happen ?
The key date is your Staging Date.

This is the date assigned by The Pensions Regulator and your business should have received at least one letter regarding this date.

You can also work out your staging date by inputting your PAYE reference number into the staging date calculator >

Start planning now – avoid the fines
How can you deal with it?
Fail to prepare. Prepare to fail!

This will take time. 3 months lead time ideally as there are steps to take and business decisions to make.
Key steps are:

  • Know your ‘Staging Date’
  • Assess your workforce.
  • Review your pension arrangements.
  • Communicate the changes to all workers.
  • Automatically‘ enrol ‘elgible jobholders’.
  • Register with TPR and keep records.
  • Contribute to workers pensions.
Compliance and Admin solutions
Many employers are now being punished for non-compliance!

The Regulator aims to deter and prevent employers from not complying.

  • Persistent or deliberate offenders will receive a £400 fixed penalty with escalating penalties of between £50 and £10,000 PER DAY! – dependent upon the number of employees.
  • Prohibitive recruitment conduct will attract fixed penalties between £1,000 and £5,000
What can I do right now ?

Ablestoke can provide you with a free consultation to help determine the best course of action ie

  • What you need to do.
  • When you need to do it.
  • How we can help you to do it.
What are the Employer duties?

From their ‘staging date’, All employers operating in the UK must automatically enrol ‘eligible jobholders’ into a Qualifying Workplace Pension Scheme (QWPS) who meet the following criteria:

  • They are aged from between 22 and the state pension age (at the staging date)
  • Earn more than the minimum earnings threshold – £10,000 (in the 2016/17 tax year)
  • Are not already in a qualifying pension scheme.
  • For a scheme to be qualifying it must pay a minimum level of contributions (as a percentage of salary)
    These will rise in phases until April 2019 when the highest ‘minimum’ percentages will be in place

Its always best to take advice on the best scheme for your business.

Start by contacting Neil for more information on 020 3463 8836

Employers main duties:
  • register your qualifying scheme with the Pensions Regulator
  • inform existing pension scheme members that they are already in a qualifying scheme
  • tell other eligible employees:
    • that they will automatically be enrolled into the scheme if they don’t join it before automatic enrolment starts
    • the start date for automatic enrolment, and
    • that they have the right to opt out
  • auto-enrol all eligible jobholders
  • pay the scheme’s contributions (employer and employee contributions).
  • Keep records for 6 years of all those enrolled into the scheme and those who opt out.

The Pensions Regulator will oversee employer compliance and has the power to fine employers for non-compliance.

(Auto-enrolment is the responsibility of the employer, not the Government or the pensions industry).


Find out more about Auto enrolling your staff. Contact us now for a FREE consultation.

Contact Us Now

“Half of being smart is knowing what you are dumb about.”

Solomon Short


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Ablestoke’s Registration Number is: OC367708 and Place of Registration is: England. The Company Registered Office is : Admirals Offices, Main Gate Road, The Historic Dockyard, Chatham, Kent, ME4 4TZ.

Ablestoke Financial Planning LLP is an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited, which is authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA register ( under reference 440703 and 440718.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

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