All firms to offer pensions

[Scottish Business Owner]

Caught this online today and noticed it also appearing on the evening news. Apparently all firms regardless of size will have to offer pensions to it's employees starting from 2012 and then it will be phased in until 2016.

BBC News - All firms must offer pensions, government agrees

I see both sides of this. From the government side there is a need to get people to fund their retirement so that the onus isn't so heavy on the government. With an ageing population it's obvious that this could become an issue for future generations.

From the employer side it seems to be yet another cost to absorb and yet more red tape to wade through. I'm not trying to be overly negative about this but I really wonder if this will put people off growing businesses and employing people.

What's your thoughts? Is this a positive move by the government or do you think it will descend into a complicated mess?

 

[Adventurelife]

Seen this as well tonight and I also see both sides of the story.

However, to me it is yet another tax on employing people and all it will do is force businesses to employ less people and use more contractors. If you combine that with NI increase and the VAT increase small business is taking a big kicking over the next few years when profitability will be a major challenge for many. It does not really fit with a growth led recovery!


The productivity gains made possible by IT and the net is leading companies to be able to employee very small numbers of staff but still operate on a scale of a larger company.

I also have not paid into a pension for myself since I was 36 after contributing from 16. When I studied the numbers it just did not stack up in any way. Approx £4-6k per year for £100k invested so you need a £0.5m pension pot to get around £20-£28k pension:angry:

I will take my chances on building businesses and living on the income or selling them. Seems a much better bet and I can only blame myself if it goes wrong.