The auto-enrolment process introduced by the government for pensions has a 95% compliance rate from small businesses. The auto-enrolment scheme was meant to encourage people to save for their retirement rather than rely on state benefits, which are less than adequate for the average Brit.
As 66% of employees are reported to have signed up to the scheme, from the outside looking in it appears that this venture has been a success, despite it being quite a stretch for smaller businesses to incorporate into their policies. But is this enough? Are people educated on how much is needed to lead an enjoyable and active retirement? It is feared that some people may consider the ‘pensions box’ ticked and continue to pay the minimum possible into such schemes, only to discover that at retirement their small pots support a much lower standard of living than they have become accustomed to.
Saving for retirement is becoming more and more of a focus for young and old alike as it becomes increasingly obvious that the state simply cannot provide for our population in retirement. Therefore, it has never been more important to save into a pension, especially given the tax benefits this offers and new flexible rules that mean you have even more freedom. Whilst I am sure that few of you intend to rely on the state pension, maybe just check once again to be certain that in retirement you can continue with the jet-setting, comfortable and luxurious lifestyle you may have become accustomed to.