When the government announced its plans to abandon the default retirement age of 65, many business owners felt that the policy was devised and implemented far too quickly and that the government hadn’t given adequate thought into what impact it would have on the SME sector.
SME’s employ just fewer than ninety per cent of the country’s workforce and therefore recent retirement and pension reforms will have the greatest impact on them. Consequently, the Forum of Private Enterprise is up in arms about new pension obligations, claiming that the government needs to make provisions for companies which employ less than ten people.
Sean Sanderson, spokesperson for the FPE, comments; “The fact is these latest reforms will hit the SME sector hardest; they are the biggest employer in the UK, have the least resource to direct into selecting the correct pension scheme for their employees and are struggling most from the aftermath of the recession.”
“The government needs to make adequate provision for SME’s; in terms of the financial support they give them and the amount of information available.”