The pension reform auto-enrolment delay could do more harm than good if employers don't take action now, according to pensions provider Welplan.
The Chancellor has announced a delay in auto-enrolment for businesses with 50 employees or less by up to 12 months, with further information due to be realised in January 2012, when the Government will confirm the new staging dates.
Welplan has said that although a delay makes sense in this economic climate, for small businesses to truly benefit they must start researching suitable qualifying schemes, start planning for implementation of such schemes and budget accordingly.
Mike Jenkins, business development manager at Welplan, said: 'There is no time to waste, otherwise the delay will do more harm than good. Given the dire financial predictions for the coming years, it makes sense to delay the added financial cost and commitment of automatic enrolment and minimum contributions for both employers and employees.
'The Government continually warns us about this 'live for now, worry about tomorrow later' attitude and the poverty-stricken retirement facing many of us. The Pensions Act 2011, with its auto-enrolment and minimum contributions, is an essential starting point. More than that, it is now law. Therefore, the reforms must proceed and will affect everyone, sooner or later. We must be prepared.'
