After being postponed to 1 January 2026, the introduction of the Government’s auto-enrolment pension scheme is now rapidly approaching.
Auto-enrolment implementation will only happen once, and it is vital your company seizes this opportunity to get it right. As time passes, employers yet to establish plans face the risk of having to hastily rush decisions in order to meet the deadline. This can result in severe negative repercussions for the business and, potentially, employees.
With time of the essence, it is crucial that employers consider the following steps ahead of the 1 January 2026 deadline:
Seek advice on options open to you in relation to auto-enrolment. Adoption of the auto-enrolment scheme may not be suitable for all employers or, indeed, employees.
Consider cost implications for your 2026 budget – be sure to allow for the additional cost of employer pension contributions.
Understand the requirements for any necessary change to your existing pension plan and contracts of employment.
Ensure there is an effective employee communication strategy in place.
Allow for pension provider capacity to avoid delays getting amendments completed.
As the deadline approaches, there is plenty for employers to consider. How employers manage the communication of the new mandate to guide and advise their workforce will greatly affect employee relations and the success of its implementation. Sourcing external advice can help businesses achieve the best outcomes.
With timelines for action becoming very tight, it is vital employers take steps now. To find out how we can support your business navigate the introduction of auto-enrolment, visit our People Solutions page (opens a new window) or contact your Lockton consultant.
