The profits of almost half of all SMEs in the UK will fall significantly if compulsory pension contributions are introduced.
Position | Small and medium sized companies - Brief article |
The profits of almost half of all SMEs in the UK will fall significantly if compulsory pension contributions are introduced, new research has found.
Under the government's proposed national pension savings scheme (NPSS), firms that don't have their own contributory schemes would have to enrol all staff on the NPSS and make a three per cent contribution to individual funds. According to a study by Bibby Financial Services, nearly two-thirds of the country's SMEs would have to pay up.
"The chairman of the Pensions Commission himself admitted that the NPSS would cause operating costs to rise by one per cent for SMEs, compared with 0.4 per cent for larger companies, so the government clearly needs to...
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