If you are currently in the middle of your studies, then the likelihood is that your pension has hardly been at the top of your agenda; and rightly so. However, there has been new legislation passed of late which means that this no longer has to be a headache when you leave University and get your first graduate job.
Previously, it was down to the employee to ask their employer to organise their pension or sometimes they even organised it themselves. There is now a concept by the name of auto enrolment which is being championed by the likes of SageOne which has all but revolutionised the world of pensions. You may well be sat there thinking that there is plenty of time to deal with this, and you would be right. This said, it is well worth you taking a quick look at this article so you know all about it when you embark on your career.
So, What Is Auto Enrolment?
Ultimately, this is a brand new piece of legislation which means that everyone in employment gets a fair crack of the whip when it comes to their pension. Not enough people were secure upon retirement, even if they had worked their proverbials off for decades and this ensures that this will no longer be the case. Your employer will now have to offer you a pension and it is then down to the individual how they go about it.
Which Companies Have to Toe The Line
In short, all of them. As long as you are starting employment with a company with one or more employee then you will be entitles to pension options. This is why the concept has been aptly names auto enrolment as you will not need to do anything, apart from perhaps ask your HR department if you are concerned.
Why Is This Important?
With the ever volatile economy showing no signs of calming down, Young Academic is in full support of pensions and in particular auto enrolment. As mentioned, we don’t blame students for not putting a lot of thought into their pension but it is never too soon to start stabilising your financial future. So, when you start working for a new company be sure to bear in mind that you now have these new pension rights!