1. Workplace Pensions – What’s It All About?
Steve Torbet
Consultant
November 2016

3. 1909
Life expectancy of male aged 65 is one year
22 workers to one pensioner

4. By 2020 3.5 workers : 1 retiree Retirement age 66 Life expectancy 77+
£££s – is a problem!
The Govt estimates that 7m people are not saving enough for retirement. And the problem is right now. In 2013 there were over 1m people over 65 still working. 324,000 were over 70 and 32,000 were over 80.
These numbers are only going to grow. In 2001 there were 8m people over 65. By 2061, that will have doubled to 16m.
Today there are 500,000 people over 90. The Office of National Statistics estimates that by 2037, this will have increased more than 5 times to 1.7m.
The Financial burden is now being passed to the Employers and their Employees

5. When will I get my state pension?
*Year of birth
Age you will receive Basic State pension
Up to 1953 65 66 67 68
1991 +
69 or older
£ per week if you have paid 35 years national insurance contributions
If you are a married couple and have both paid full contributions, you can double this.
In April 2016 the basic state pension is changing to be a flat rate for everyone, sweeping away the piecemeal approach of tax credits and SERPS in place until now.
Only 45% of new pensioners will be entitled to the full, new, flat-rate state pension in the first five years of the system, government figures show.
The new state pension, aimed at simplifying the system, will see a single payment of about £150 made to new pensioners from April 2016.
Figures suggest that two million people will not get the full amount.
However, the government has stressed that they will be no worse off than under the current system
* Transition is gradual depending on exact birthday
Source:

8. Employer contribution (Non-eligible jobholder)
Who needs to be auto enrolled?
Entitled
Workers
Non-eligible
Jobholders
Eligible
Jobholders 75
OPT IN
No employer
Contribution
(Entitled
Worker)
OPT IN
Employer contribution
(Non-eligible jobholder)
Employer
contribution
(Non-
Eligible
jobholder)
SPA
(state pension age)
AUTO-ENROL
(Eligible jobholder)
QUALIFYING EARNINGS (QE)
In additions to making changes to the basic state pension, the government is also introducing Workplace Pensions and auto enrolment
3 Categories of Eligibility  Linked to age & earnings
ELIGIBLE, NON-ELIGIBLE AND ENTITLED
3 more useless descriptions you couldn’t invent 22 16
Earners
£5,824
Qualifying
Earnings
Threshold
£10,000
Earning
Trigger
£43,000
Upper Limit

9. Small/micro employersSS
How much will it cost?
1% jobholder 3%
jobholder
5% jobholder
Phasing
1% employer
2% employer
3% employer
Large employers
Medium employers
Small/micro employers
New PAYEs
Staging
Highlight the period we are in now.
Stress date based on number of employees as at 4/12
Any planning has to take into account costs in 2018 not just the for now
Will employees stay with it when it reaches 5% contribution? Does the Govt know that?
Future compulsion? Australian model?
Oct
2012
April
2014
Aug
2015
May
2017
Apr
2018
Apr
2019

10. Learning from experience
“I should have started planning earlier”
If you don’t know your staging date, check it out soon!
A good payroll solution will make a big difference
Don’t imagine everyone will opt out
And please dont encourage staff to opt out
Postponement has been used by many employers but
People will opt-in during the postponement period
Employee communication to the workforce is critical
Lessons learned so far from the experience of larger employers
Lessons learned from first large employers:
Should have started earlier
Employer communication to the workforce is critical – where it’s been effective it minimises calls to employer or contact centre
Employers use postponement – most are delaying their first enrolment even if only to align with the payroll cycle
People opt-in during this period
Those who wish to opt-out will – they’ll find a way
Illuminating advice

11. You should not view any of the information contained within this presentation as advice.
damgoodpensions.com and DAM are the trading styles of Davidson Asset Management Ltd
This presentation represents our present understanding of current legislation and HM Revenue & Customs practice which may be subject to change
Please remember that current tax benefits depend on individual circumstances and rates of tax relief may be altered or withdrawn without notice.
Auto enrolment is not regulated by the Financial Conduct Authority
Davidson Asset Management Ltd is authorised and regulated by the Financial Conduct Authority
The value of investments may go down as well as up and are not guaranteed.
Compliance slide
You should not view any of the information contained within this presentation as advice.
This presentation represents our present understanding of current legislation and HM Revenue & Customs practice.
Please remember that current tax benefits depend on individual circumstances and rates of tax relief may be altered or withdrawn without notice.
The value of investments may go down as well as up and are not guaranteed.