Independent Financial Advisers Glasgow

Warde Graham are a leading firm of financial advisers based in Glasgow city centre. With a reputation for strategic planning advice and the establishment of long term relationships we offer independent financial advice on a wide range of topics including pension performance, estate planning, wills and mortgage broking.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Login
    Login Login form

IoD calls for two year postponement of pension auto-enrolment

Posted by on in Pension Planning and Advice
  • Font size: Larger Smaller
  • Hits: 1263
  • 0 Comments

The Institute of Directors (IoD) has called for the Government to postpone the phased introduction of auto-enrolment pensions for two years (until 2014). Under present plans employers will begin to automatically enrol staff onto pension schemes from October 2012.

The IoD is opposed to the introduction of auto-enrolment on the proposed timetable for three key reasons:

•The regulation comes at a time when real incomes are being eroded by inflation. The last thing the country needs now is to further reduce spending power by creating employee pension contributions for all workers earning more than the income tax personal allowance.
•Many employers are currently struggling to find the resources to offer their staff salary increases. When auto-enrolment commences, firms may find the additional employer contributions swallowing up any potential pay rises. When IoD members were asked earlier in the summer how they would make up the contributions, one third said they would be forced to freeze salaries.
•Employees have the opportunity to ‘opt-out’ of auto-enrolment. With household budgets already stretched, many employees will prioritise income now over future retirement savings. The IoD predicts high levels of employee opt-out as a result. This means the policy would fail in the Government’s objective to increase pension saving, while loading employers with unnecessary administration.

Commenting on the Government’s proposed timetable, Simon Walker, Director General of the IoD, said:

“It is not too late for a change of course – if the Government defers auto-enrolment at next week’s Autumn Statement, it will have done so before most businesses have even considered the impact of the new rules. A few months ago when we asked, one in five of our members did not even know the legislation was coming into effect from next year.

“The IoD proposes that the Government delay the introduction of auto-enrolment by two years. This would give businesses time to strengthen their balance sheets while not undermining consumer spending when it’s at its weakest.”

 

Alan has been advising individuals and corporate entities for over 15 years, both in the UK and overseas. He set up Warde Graham in 2003 after a successful career in wealth management.

Working closely with clients, Alan puts together holistic financial planning solutions taking time to understand clients’ business, individual and family needs. Many clients are referred by solicitors where tailored advice is a priority, to mitigate inheritance tax and plan for long term care provision. Alan has a strong knowledge and expertise of the full range of Trusts, advising both families and individuals, while keeping up to date with the ever changing legislation.

Alan has three children and is a keen sportsman with an interest in golf, curling and hill walking - the latter to relax from the frustrations of the others.

Comments