As the old saying goes ‘money makes the world go round’ and arguably, there is some basis of truth in it. In the current recessive market and the prospect of quick-term improvements looking slight, it can prove even more difficult to think about your financial security in the long run.
So whilst our economy continues to trundle on, one change that is being implemented later in the year is the introduction of NEST Pensions. This much-talked-about and critically anticipated pension scheme follows a new law put in place that, as of October 2013, employers will be obliged to allow employees access to an auto-enrolment NEST Pension scheme.
Times Are A-Changing
In a time where every penny counts, what has really got people talking is the control or, on the other hand, lack of control that the implementation of such a scheme has over employers and their trusted workforce. If you are concerned about how this will affect you, it can never hurt to seek the advice of a reputable financial wealth management firm.
As with any new legislation, there is often an air of uncertainty and confusion as information is passed and shared by word of mouth, print and across the web. With the well-being of so many finances affected by this new law, it is natural to want a full understanding of the implications and what they will mean for you.
Don’t fret, help is at hand.
1. Who are NEST and what does their pension scheme mean?
The National Employment Savings Trust (NEST) are responsible for the management of employment saving schemes such as pensions. With the introduction of this new legislation, a NEST pension scheme will serve as a workplace pension that will employers must offer to their employees. Employees will then be able to auto-enrol on the scheme.
2. Why has this law been introduced?
The government have put these changes in place to encourage people to save for their retirement. With a longer life expectancy and a rising retirement age, this pension reform aims to ease the current strain on State Pensions making more people aware and pro-active in saving for retirement.
3. What does this mean for the employer?
Employers will need to give their employees access to enrol or auto-enrol them onto a workplace pension scheme. Regardless of your businesses size and stature, Nest Pensions offer:
– No charge to set up and use for the employer
– Access to support and on-line management from NEST at anytime
– The choice to control your company’s NEST account or delegate it to an internal resource or external service provider.
– A pension that works alongside existing schemes or can be used as your sole scheme.
4. What does this mean for the employee (saver)?
Employees will have a clear understanding of how much money they are contributing to their ‘pot’ as well as being able to control distribution levels and switch funds.
Your Nest retirement ‘pot’ stays the same should you change your job, become self-employed or stop working, ensuring that you say in control of your retirement fund and any complications are avoided.
A Time For Forward-Thinking
Saving for retirement doesn’t have to be a chore. Whatever your thoughts on the latest NEST Pension schemes, one thing that cannot be argued against is the importance for us as a nation to think about our future. NEST’s simple and manageable schemes can only help as we look to put away some money for the days ahead.