I was reading a book a few nights ago about saving for a pension, as new legislation has been introduced to enrol employees into pension schemes. Not only is this applicable to employees but also temporary workers.
Employees as well as temporary workers will automatically be enrolled into pension schemes where employers match a percentage of the contributions they make. From June 2016 any of Atwood Tate’s temporary workers will be automatically enrolled in our pension scheme after 12 weeks in the same assignment, unless you choose to ‘opt out’. But the contributions you do make into a pension scheme are tax deductible. The minimum contribution by employees is 1% contribution with employers matching this 1% payment. This is set to increase over the following years.
As Manager of the Temps and Freelance Team here, I was a bit sceptical about temporary workers making pensions contributions. Temps work in short term assignments how can it possibly work for them to make pension contributions? Also when you’re young and you have your whole life in front of you, the last thing you want to think about is saving for old age and retirement.
However, what I learned in this book was something my parents failed to educate me on.
I was intrigued to read, the older you get the bigger your contributions need to be and the more money you should be saving. Being originally from the US and Canada, I also learned you won’t get a full pension in the UK if you have lived here less than 35 years. The book also said the government can only do so much and is trying to make us aware now that you won’t be able to afford to do so many lovely things on a state pension. Pension legislation is complicated but there are people out there to help.
After reading this, I realised this scheme also helps make people of all ages think about the value of saving, not just for a rainy day, but for all of those wonderful things you will be able to finally do when the kids have left home and you are no longer in the working world, free to enjoy your retirement.
I also started to warm to the idea that starting to save for a pension as a temporary worker is a beginning and a way to get you started early. The younger you are the less you need to start contributing.
I now understand it’s a good idea to save a little now and you can still have holidays when you finally don’t have to work anymore. Live your dreams now and in the future and with good advice and a plan, you can!
For general Pension advice: https://www.gov.uk/workplace-pensions/about-workplace-pensions
If you’d like to more about temping with Atwood Tate and the latest legislation, have a look at our brochure with more information and guidance. Please also call us to sign up! https://www.atwoodtatepublishingjobs.co.uk/downloads/ATW20_BROCHURE.pdf