British Workers to be Auto Enrolled for Pension Plans
According to the figures available, approximately 8 million working Britons, are not, saving anything for their retirement, which Means that all the employed population is relying on their basic state pension that would be provided to them by the government. In order to encourage the habit of saving among Britons, the National Employment Savings Trust will be implemented, next year.
In an announcement made last week, the government has stated that workers will be auto-enrolled into the program, in the following year. Though, an estimate regarding the amount of savings has revealed some sad pictures.
The National Employment Savings Trust has been developed by the Personal Accounts Delivery Authority. The stipulated time that would be used by Nest to phase in the work would be from 2012 to 2016, the number of people, who will be enrolled into Nest would be anywhere from 3million to 6million.
The trust has been launched to provide security to people in Companies, where they don’t have access to a pension scheme by their Company. The program would be concentrating on 800,000 people, who are working in small firms and have five or even a fewer number of employees.
Workers above the age of 22-years old and earning more than £5,732 a year will be automatically inducted in the program. Though, employers, who are found of asking their employees to opt-out from the program, will be fined £50,000.