Over a quarter of businesses unprepared for rising workplace pension contributions

For Immediate Release 26 March 2018

  • Over a quarter (28%) of senior business decision makers are unaware that automatic enrolment minimum contributions are increasing on 6 April
  • Nearly half (42%) of senior business decision makers are unaware of the increase to minimum contributions in April 2019
  • Employers who do not comply with the rules face fines from The Pensions Regulator

Over a quarter (28%) of senior business decision makers are unaware of increases to minimum workplace pension contributions from 6th April according to a survey* of 691 senior decision makers by NOW: Pensions, the workplace pension provider.

On 6 April, contributions will rise from 2% of qualifying earnings – with employers responsible for at least 1% – to 5%, with employers responsible for at least 2%.

In April 2019, contributions rise to 8% of qualifying earnings with employers responsible for at least 3%. The survey found that nearly half (42%) of senior business decision makers are unaware of this change.

Awareness amongst small businesses is better with four out of five (81%) aware of the upcoming changes in April 2018, in comparison with just a third (66%) of large businesses.

Amongst those senior business decision makers that know about the upcoming changes, 92% are also aware that their business could be fined if they don’t act.

Commenting on the findings, Adrian Boulding Director of Policy at NOW: Pensions said: “Although these changes have been planned for a number of years, it seems that some employers still risk being caught out. The good news is, it’s not too late to take action and there’s plenty of support available for those that may be unsure what to do.

NOW: Pensions has developed a toolkit to help employers communicate these upcoming changes to their staff which can be downloaded here.

–     ENDS     –

 

For further information:

Amy Mankelow / Cheriton Lee

NOW: Pensions

Tel: 0203 948 9234 / 0203 948 9236

amy.mankelow@nowpensions.com / cheriton.lee@nowpensions.com

 

Ben Wright

Cicero Group

020 3841 9333

ben.wright@cicero-group.com

 

Notes to editors

*Total YouGov sample size was 691 B2B senior decision makers. Fieldwork was conducted between 29 January and 2nd February with YouGov. The survey was carried out online. The figures have been weighted and are representative of British business size.

NOW: Pensions www.nowpensions.com @nowpensions

NOW: Pensions is one of the UK’s largest workplace pension providers with over a million members and tens of thousands of employers from a wide range of sectors. A company wholly owned by Danish pension scheme ATP; one of Europe’s largest pension funds. NOW: Pensions entered the UK market in 2011 with a simple and cost effective workplace pension designed specifically with the auto enrolment market in mind.

 

NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions. — Martin Woods, SALT.agency
NOW: Pensions was attractive to us because the staff were very helpful and they sent over all the information required. This made the decision easy. — Metro Surveillance Group Ltd
Our broker recommended NOW: Pensions, as they believed it would be our best option. We have not been disappointed, the NOW: Pensions customer support teams are great and always available. — Bromborough Paint & Building Supplies Ltd