Employee reward and benefits news
Enrolling employees in pension schemes can prevent 'future pitfalls'
Employees would be better off enrolling staff into existing pension schemes than the National Employee Savings Trust (Nest), suggested a pensions expert.
Speaking to the FT Adviser, independent pensions guru Ros Altmann emphasised that auto-enrolment was not a straightforward procedure and would have to be accompanied by sound financial advice that would take into account the individual needs of the saver.
She added: "Existing scheme contributions from employers are generally much higher than Nest contribution levels, so there will be a reduced risk of leveling down if we start by enrolling people into existing schemes."
Her comments follow in the wake of the government announcing plans to scrap the default retirement age of 65 years-old by October 2011.
Although details and complications still need to be ironed out, the move is part of the coalition government's concerted efforts to reform the pensions system in the UK and to bring public sector spending under control.
Posted by Jo Morgan
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