The warning comes as the deadline for employers to sign staff up for a scheme other than the new My Future Fund auto-enrolment pension is this Sunday.<\/p>\n
Some businesses have been caught off guard by the approach of the deadline, according to Keith Butler, chief executive of Ask Acorn, a nationwide network of financial advisers.<\/p>\n
But the impending deadline should not mean businesses and workers should rush into decisions around pensions, he said.<\/p>\n
About 750,000 workers are set to be signed up to the My Future Fund auto-enrolment pension from early January. It has been described as the biggest shake-up in the pensions landscape in the history of the State.<\/p>\n
It has emerged, however, that some companies are trying to avoid having their staff signed up to My Future Fund because they do not want to handle the administrative burden and cost involved.<\/p>\n
These companies are attempting to undermine the scheme by forcing their staff to join an inferior in-house pension scheme.<\/p>\n
Other firms are signing their staff, who do not have a pension outside of the state pension, into the company scheme and paying the full contributions other staff in the company pension are getting. This will mean these staff members will not be auto-enrolled into My Future Fund.<\/p>\n
Mr Butler said November 30 marks the deadline for employers to ensure contributions are paid through payroll to a qualifying pension plan for all eligible employees who don\u2019t want to be automatically enrolled in My Future Fund.<\/p>\n
\u201cFrom our discussions with clients, it\u2019s become evident that some employers and employees have been caught off guard by this November 30 deadline and may be making, or feel under pressure to make, rushed decisions,\u201d he said.<\/p>\n
\u201cDecisions around pensions should not be rushed. Instead, it\u2019s important to take the time to make the right decision and provisions for retirement.\u201d<\/p>\n
Mr Butler said employees should carefully examine any pension alternative being put to them by employers ahead of the deadline. He said this was in the context of Social Protection Minister Dara Calleary committing to bring in regulations to protect the integrity of the new auto-enrolment scheme.<\/p>\n
\u201cEveryone eligible for auto-enrolment should be looking closely at what the scheme offers and considering independent advice, including around any alternative offer on the table from an employer,\u201d he said. \u201cWorkers eligible for auto-enrolment should note that it\u2019s not a one-size-fits-all solution. For some, this scheme will be a good fit.\u201d<\/p>\n
But for others, particularly those with different income levels, career paths or retirement goals, My Future Fund could fall short of delivering the retirement they\u2019re expecting, the Ask Acorn boss said.<\/p>\n
Contributions to the auto-enrolment pension will begin in January.<\/p>\n","protected":false},"excerpt":{"rendered":"The warning comes as the deadline for employers to sign staff up for a scheme other than the…\n","protected":false},"author":2,"featured_media":155897,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,29869,246,29870,111,139,69,244,245],"class_list":{"0":"post-155896","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-charlie-weston","10":"tag-finance","11":"tag-money-experts","12":"tag-new-zealand","13":"tag-newzealand","14":"tag-nz","15":"tag-personal-finance","16":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/155896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=155896"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/155896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/155897"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=155896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=155896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=155896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}