Employers and their staff should prepare for a "pensions crunch" when a host of workers are enrolled into workplace schemes, experts say.
The latest figures show that one million people have been automatically enrolled into schemes, under a government policy to encourage saving.
Under the gradual introduction of the project, staff with some 29,000 medium-sized firms will join in early 2014.
Smaller businesses will eventually sign up by 2018.
"This is a real landmark, finally reversing decades of decline in pension saving," said Pensions Minister Steve Webb.
"With close to 30,000 employers due to auto-enrol in the first half of 2014 there are serious questions about how the industry will cope with this influx of demand," said Laith Khalaf, head of corporate research at investment company Hargreaves Lansdown.
BBC News - Pension 'crunch' to come in 2014
Yes they won't know what to spend it on first and of course generating millions in fees and commission for those who 'manage' the funds. It will of course mean that when all these people retire the government will be collecting more tax, since your pension will be taxable. Oh and that's if the government doesn't decide that your pension will be too much and a drain to the pension fund. Not forgetting of course that when everyone is in a pension why would they want to pay you your state pension?
Money making scam probably suggested to the government by bankers who need more money. Think I'll stay cynical of such things.
The latest figures show that one million people have been automatically enrolled into schemes, under a government policy to encourage saving.
Under the gradual introduction of the project, staff with some 29,000 medium-sized firms will join in early 2014.
Smaller businesses will eventually sign up by 2018.
- From October 2018, when the scheme is in full swing, this person will see ?573.28 a year leave their take-home pay packet over a year (?47.77 a month), with ?1,146.56 added to their pension pot over the year (?95.55 a month)
- This money will be invested. When this person retires, they can use this money to buy an annual pension income called an annuity
"This is a real landmark, finally reversing decades of decline in pension saving," said Pensions Minister Steve Webb.
"With close to 30,000 employers due to auto-enrol in the first half of 2014 there are serious questions about how the industry will cope with this influx of demand," said Laith Khalaf, head of corporate research at investment company Hargreaves Lansdown.
BBC News - Pension 'crunch' to come in 2014
Yes they won't know what to spend it on first and of course generating millions in fees and commission for those who 'manage' the funds. It will of course mean that when all these people retire the government will be collecting more tax, since your pension will be taxable. Oh and that's if the government doesn't decide that your pension will be too much and a drain to the pension fund. Not forgetting of course that when everyone is in a pension why would they want to pay you your state pension?
Money making scam probably suggested to the government by bankers who need more money. Think I'll stay cynical of such things.
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