According to figures from the Office of National Statistics only a third of private-sector workers are saving into a pension scheme and only 8.2 million UK workers were active members of occupational pension schemes in 2011, the lowest number since the 1950s.

These statistics are behind the Government’s decision to transform pension savings, making employers responsible for setting up schemes and automatically enrolling staff.

If you are an employer you must also make contributions towards it.

Your staging date (when you will have to have a qualifying pension scheme in place) is based on your PAYE reference, with smaller firms starting in 2014.

About a third of employers enrolling staff in 2014 do not currently offer their workers a pension, so many will be looking at staff pension schemes for the first time.

The fines for non-compliance are significant and imprisonment is even possible.

A compliance notice initially brings a £400 penalty. Further fines are based on number of employees. It is vital, therefore, that employers ensure that plans are in place early in order to make the transition as smooth as possible.

Independent Financial Advisers Huntington Ross are able to guide you through the process.

Formed in 2008 by Neil Huntington, Huntington Ross combines 20 years of independent financial advice experience.

Based in York, the firm has an excellent track record of helping York companies look after their finances and plan for the future.

For more information or to book an introductory meeting please contact info@huntingtonross.co.uk or phone 01904 738489.