I have recently heard that plans to enrol workers automatically into company pension schemes may be put on hold amid mounting concern over the state of the economy. It was mentioned in the Sunday papers that there was a government report which recommends delaying the introduction of the flagship new system, due to begin next year, and suggests smaller firms could be exempted altogether. There are concerns over the financial and bureaucratic burden on small businesses at a time when many are already struggling. There are also worries about the potential impact on consumer spending, with as many as 7 million workers not currently saving for their retirement suddenly receiving significantly smaller pay packet. Experts estimate the scheme will take around £10 billion a year out of consumer spending as every firm would be legally obliged to provide a pension scheme for workers and to make a contribution into the fund.
The new rules are supposed to be introduced from October 2012 but I’d like to know whether there is a chance that the government will put everything back in an attempt to help the economy grow, as personally I don’t think they will.
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