Recent years have witnessed a great upsurge as regards auto enrolment. It may be referred as a wise step on the part of the government with its aim to assist the people for saving for their later years through a workplace pension fund. A large numbers of workers in the past did not enjoy this facility as the same was not facilitated to them by their employers. Moreover, many employees did not know how to avail of this unique plan. However, introduction of automatic enrolment plan compels the employers to enroll their staff into the pension scheme and also deposit a considerable amount in the same.
Unique features– Following features of this valuable scheme have made it much popular:
- Eligible workers are offered a workplace pension by the employers under this scheme that has enhanced its preference and popularity amongst all concerned.
- Automatic enrolment of the eligible employees into this scheme has benefited them to much extent.
- A reasonable amount of contribution on the part of the employer goes a long way in helping the employees that are benefited in their later lives.
- Employees that are enrolled in this scheme are benefited by way of tax relief too. However, they can leave the scheme as and when they desire so.
- Timely enrolment into the scheme is a matter of great relief for the employees.
- Contribution by the employer makes this scheme all the more alluring for the employees.
- Employer contributions and tax relief make pension funds an attractive option for saving for your retirement
- Employees own contribution towards auto enrolment scheme enhances the pension fund to much extent. Their deposits go on increasing till their retirement. Known as qualifying earnings, the relevant amount pertains to a part of the worker’s own pay.
- The workers that are enrolled into the scheme can live peacefully as their future years are secured through it. It is a sort of safe deposit that would benefit them in their old age. The financial security enabled to the workers through this great scheme is a matter of great relief to them.
- Automatic enrolment into the scheme does not put any burden upon the employees. They do not have to spend any extra amount for joining the scheme.
- This workplace pension scheme initiated by the government through the employers with their own contribution and that of the employees gives great relief to the latter.
- Millions of employees have since been enrolled into this scheme after its introduction.
- Government’s efforts for making the scheme more popular have enabled the employees to avail its benefits. They are at great advantage as their future years get secured with this workplace pension scheme that gives them peace of mind.
- Nobody is at any loss due to this scheme. It is one sort of social and financial security to the employees.
The above unique features of auto enrolment have gone a long way in benefiting the employees for themselves and their family