It’s been more than a decade since auto-enrolment in workplace pensions was first introduced by the UK Government.
And it’s fair to say that the measure has transformed the level of pension saving in the workplace. Plus it’s transformed the role that businesses (and their owners) can play in the financial wellbeing of their employees.
Mind you, there are plenty of paraplanners who weren’t around when auto-enrolment was rolled out. Or when the Pensions Commission was formed in 2005. Or when personal pensions were launched in 1988.
So in this bonus Assembly episode, we asked Barnett Waddingham’s DC pension and employee benefits expert, Lucy Clark, to provide paraplanners – whatever your level of expertise – with a primer on the origins of workplace pensions, auto-enrolment and where things might be going in the future.
Past
In just 20 minutes, Lucy provides a potted history of personal pensions, stakeholder pensions, why the original Pensions Commission was formed and its legacy.
Present
What’s more, Lucy walks through the employer duties that need to happen each pay period and the common pitfalls she sees in practice (contribution deductions and certification crop up a lot). She offers a helpful explanation of the net pay anomaly that’s affected lower earners in occupational schemes and – this is a new one for us – Lucy talks about ‘sidecar savings’: an idea that could help people build emergency funds alongside their pension in future.
Future
Speaking of the future, Lucy also considers what it might hold. We’re talking potential changes to age thresholds, removing the lower earnings limit, and the ongoing push for contribution adequacy.
This is a fantastic backgrounder packed with knowledge, know-how and insight from a DC pension and employee benefits expert.
