31 July 2017
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. The rise will be enforced from 2037 and will impact those who are currently aged between 39 and 47.
Auto-enrolment for hair and beauty professionals
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. Automatic enrolment makes it compulsory for British businesses to automatically enrol eligible employees into a pension scheme and make contributions to it (unless the employee opts out).
Noncompliance for salon and barbershop business owners
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.
NHBF 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.”
- To view an infographic with statistics on the hair and beauty industry, visit https://www.nhf.info/documents/hair-and-beauty-industry-statistics
- Statistics from the above survey revealed that there are 100,000 people between the ages of 35 – 54 in the hair and beauty industry, so it is estimated that about 42% (42,000) will be in the 39 – 47 bracket.
This statistic does not feature in the above infographic, so if you would like to receive the full report, please do email: Kelly.firstname.lastname@example.org
- For further information on the NHBF’s pension scheme, visit: https://www.nhf.info/benefits/pension-scheme/nhf-pension-scheme
- Visit the GOV.UK website for information on the action business owners will need to take: https://www.gov.uk/workplace-pensions-employers
- For information on the small business survey, visit: https://www.bidvine.com/blog/pension-auto-enrolment/