Employers have to automatically enrol workers who are not in a qualifying pension scheme, are at least 22 years old and earn more than £8,105 a year.
The employee will pay 2% from oct. 2012 and increase up to 8% from oct. 2018.
Employees have the right to opt out but it seems not many people have been informed of these changes and there implications.
The poor and the low earners who are already struggling with making ends meet will have additional money taken from their pay packets. The timing of such a program is questioned by some commentators, but no real discussion seems to be in progress in the main media.
One estimate highlighted on the BBC, shows that someone who is 22 years old today and earning above the £8,105 will after 46 years receive £3,600 per annum in pension from the scheme.
Most workers who are in a low paying job will be facing additional challenges to make ends meet, if these additional deductions are made from their pay. Pensions are a great idea, but the timing of these changes seems to be questioned by some.
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