Companies are not obliged to set up their own company (or occupational) pension schemes, but the Government has said it intends to encourage company schemes as the best way of providing pensions for employees.
Changes in legislation, as well as demographics, mean that company pensions are expensive to provide. The increase in the minimum age at which pensions can normally be taken (from 50 to 55 in 2010), the introduction of a 'default' pension age at 65 in April 2006 and moves to encourage employees to work longer, may make things easier. In any case a pension scheme is a selling point in attracting and retaining employees.
This briefing explains:
- The different options.
- The costs to an employer.
- Where to get help.
