Pension age rise will impact on thousands of hair & beauty workers

The government’s recent announcement that the state pension age will rise from 67 to 68 means that up to 42,000 hair and beauty professionals will have to work an extra year before they are able to retire and receive their regular state pension payment, warns the National Hairdressers’ Federation.  The rise will be enforced from 2037 and will impact those who are currently aged between 39 and 47. The news has emphasised the importance of pension auto-enrolment, particularly for those in this age bracket, so that they can potentially access some of their workplace pension from the age of 55 and not be solely reliant on receiving the state pension says the NHF. Automatic enrolment makes it compulsory for British businesses to automatically enroll eligible employees into a pension scheme and make contributions to it (unless the employee opts out). Yet statistics from a survey of more than 2,300 small businesses revealed over a third do not know what pension auto-enrolment is, despite the looming deadline. From 1 February 2018, noncompliance for business owners can result in hefty fines and even imprisonment. NHF CEO, Hilary Hall commented: “With the impending 2018 auto enrolment deadline upon us, it’s worrying that so many business owners are completely unaware of their responsibilities when it comes to pensions, which is why we are urging those in the hair and beauty industry to take action. “In addition to auto-enrolment being a legal responsibility, the age rise in state pensions makes it even more important for employees to save for their retirement so they have the financial flexibility to retire before they reach the ever-increasing state pension age.”