Pensions are one of the most important aspects employers must take into account when deciding to take in employees, as some deductions from wages need to be done, and you must also choose an adequate pension scheme. Let WAYFINDERS Consulting manage these affairs for you with the provided assistance of a professional chartered accountant.
What Are Pensions?
Workplace pensions are one of the forms of saving for retirement that must be arranged by employers for employees. You must pay them under the context of Auto Enrolment rules.
Contributions are taken partly from your employees’ salary—that is 5% as a minimum contribution—and a part that you must also contribute with—a minimum of 3%—that amounts to a total of 8% worth of minimum contributions. These contributions can either be a fixed amount or a percentage that is based on the earnings of your employees in a given period.
What Is the Relevance of Pensions?
Pensions are very relevant, as they are a means for your employees to be able to retire in the future. There are different plans that can adapt to both your needs as an employer, and those of your employees.
WAYFINDERS Consulting provides intensive counselling, guidance, and support throughout all of the stages that pensions for employers demand.
Types of Pension
There are different types of pensions under the current system: State pensions, defined contribution pensions, and defined benefits pensions. The first one is public, while the other two are private.
State pensions are those that you can claim once you reach a certain age. This age is called the State Pension age. For a long time, this age has been a standardized age of 65 years. However, there are current plans to push forward the age to those born after April 6, 1970, to 67 and 68, depending on what age bracket you were born in. This is very important, as this will also help determine the amounts that must be contributed to your employees.
The defined contribution pension, also sometimes called a ‘money purchase’ pension, can be conceived as a pension pot. One example of a very well-known workplace pension is Nest, which must be arranged by the employer. The money is invested by the pension provider, and the size of the pot is defined by the performance of these investments.
Then, there is a type named the benefit pension. This type of pension relies on your employees’ earnings, mostly based on their longevity at the workplace, and their pension scheme terms.
At WAYFINDERS Consulting we carefully assist you concerning which pension type to choose, safeguarding your interests and all those of the parties involved.
Pros of Pensions
- Pensions make up for the typical losses of income experienced during retirement
- Pensions provide economic protection to your employees and their families in case of demise
- You also get retributions as an employer in the form of tax relief
We Deal with Pensions for You
This is what we can do for you:
- PAYE registration and other services
- Contribution calculations
- Pension scheme planning
- Tax deductions
- Further HMRC support
- Payroll run support