Are you ready for the pension deadline?

The National Hairdressers Federation has urged business owners to automatically enrol employees into a pension scheme and make contributions to it, or risk receiving hefty fines or imprisonment,

It is compulsory for British businesses to automatically enrol eligible employees into a pension scheme, unless the employee opts out and, from 1 February 2018, failure to do so can result in harsh punishments.  A recent survey of 2300 small businesses shows that over a third of small business owners do not know what pension auto enrolment is, despite the deadline looming.

The government recently announced that the state pension age will rise from 67 to 68, leaving 42,000 hair and beauty professionals with no choice but to work an extra year before they are able to retire and receive their regular state pension payment. The rise will be enforced from 2037 and will impact those who are now aged between 39 and 47.

NHF CEO, Hilary Hall said, “With the impending 2018 auto enrolment deadline upon us, it’s worrying that so many business owners are completely unaware of their responsibilities when it comes to pensions. In addition to auto-enrolment being a legal responsibility, the age rise in state pensions makes it even more important for employees to save for their retirement so they have the financial flexibility to retire before they reach the ever-increasing state pension age.”