According to research by Scottish Widows, 52% of employees are unaware of auto-enrolment, which starts for larger companies in October.
Auto-enrolment is new pension legislation, introduced by Pensions Act 2008, which states that from October 2012 and during a period of up to 5 years, eligible employees will be automatically enrolled into their employers workplace pensions scheme. This will not require an active involvement from the employee and (unless the employee opts out) the employer, as well as establishing a qualifying scheme, or using the government default ‘NEST’ scheme, will be required to make mandatory contributions.