A new study from Sage has found that many small business owners are worried about the effects of the auto-enrolment pension system which is currently being rolled out in the UK.
Two in five small business owners said they fear the new pension scheme could damage their business, and just under 40% say they expect it will cause cashflow problems over the next 5-10 years.
More than half (51%) say they are worried about the cost of contributions, and 69% do not currently have a pension scheme in place.
Under the new initiative, businesses of all sizes must offer a pension scheme to their workers. Larger businesses already have to comply with the new rules, whereas medium-sized businesses (49-250 employees) will begin to implement the initiative next month. The UK’s smallest businesses will have to comply with auto-enrolment between 2015 and 2018.