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Pensions shake up set for roll out

Some 600,000 people are expected to be enrolled into a workplace pension by the end of the year under a new system that automatically diverts funds from their pay packet.

The automatic enrolment scheme begins on 1 October and will mark one of the biggest changes to the pension system in the UK.

Unless a worker is already part of a scheme then employers and staff will pay contributions into unless the worker opts out.

The system will be phased in gradually, with workers in the smallest firms not seeing any change for a few years.

Hugh Pym reports.

  • 20 Sep 2012