In a report in industry Newspaper Financial Adviser, the secretary of State for Work and Pensions, Alan Johnson has said that employers will have to take a more active role in the provisions of pensions for their staff and that they should pay more into pensions for their staff.
Our view
Hogwash! The Government again trying to distance themselves from their responsibility to educate the people to save more and leaving the employer to pay for mistakes. Make no mistake, what is on its way is compulsory pension contributions for employers. Whether it is three years away or ten years away - employers will be forced to pay more.
In fact it has already started. Did you know that employers have no limit on the amount of National Insurance that they have to pay for their employees. It used to have a limit but there is now no ceiling on what employers pay. They pay up to 12.8% on what you earn!
Expect more of the same.