Automatic enrolment – business as usual

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Next month anyone setting up a business will need to consider automatic enrolment alongside all the other tasks associated with starting a new venture.

Whether you’re opening a cafe, a hairdresser or an IT solutions firm, as soon as you take on staff you will have workplace pension duties.

As employers, you’ll need to tell all your staff about automatic enrolment, check whether they’re eligible and if they are, you must set up a pension, enrol them and make the correct contributions.

If you are setting up a business, you’ll have spent time considering whether you need staff. This means you’re likely to have had time to consider how you will meet your duties, including setting up a pension scheme.

The benefit to having duties as soon as you open your doors for business and take on staff is that you can include automatic enrolment in your plans from the start.

Employers can set up systems and ways of working which are suitable from the start, rather than needing to make changes to existing processes.

The start of instant duties for employers marks another landmark in the roll out of automatic enrolment. It shows that enabling your staff to save for retirement is now simply the business norm.

More than 8.5 million people are now saving into a workplace pension making it well and truly the social norm. Employers will find that staff now expect it to be part and parcel of their new job.

Research commissioned by DWP shows staff who’ve been automatically enrolled are pleased they are now saving for their retirement and most think it’ll be a good thing if they and their employer contribute more in the future.

The research demonstrates just how far we’ve come in changing the savings landscape. Hundreds of thousands of employers are doing the right thing for their staff and that includes thousands of employers who are set to complete re-enrolment – putting staff who opted out initially – back in.


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By Darren Ryder
Director of Automatic Enrolment