Pensions - Articles - Employers are seeking auto enrolment advice too late


 With 1.2 million small and micro businesses set to begin staging from June next year, new research conducted by independent financial researcher Defaqto on behalf of NOW: Pensions, reveals that these employers could be heading towards a pensions disaster.

 Nearly three quarters (72%) of advisers say employers are coming to them for advice either very close to, or after, their auto enrolment staging date, while the majority (87%) are concerned that employers lack the knowledge to make informed decisions on the appropriate auto enrolment solution for their employees.

 Of the 244 advisers questioned by Defaqto, half (50%) say firms have turned to them very close to their staging date, while 22% say they’ve had firms approaching them both very close to and after their staging date.

 Morten Nilsson, CEO of NOW: Pensions said: “While auto enrolment has been successful so far, it is important that smaller employers and the industry do not get lured into a false sense of security.

 “As small and micro companies begin to tackle the complexities of auto enrolment, many will lack the know-how, experience and resources required. While it is fairly common for employers to come to us late in the day or after their staging date, we urge those who will begin staging next year, to plan ahead. We are of course happy to accept latecomers and will do all we can to get them back on track, but in the case of auto enrolment, it is worth remembering that a little planning goes a long way.”

 Over half (51%) of advisers say the volume of auto enrolment business they’ve received to date is as expected, while 6% say it’s more than expected and nearly a third (31%) say it’s less than they hoped. However, looking ahead, half (51%) are confident that auto enrolment represents an opportunity for them to grow their business.

 Scott Gallacher, Chartered Financial Planner at Leicester based IFA Rowley Turton said: “To date it has been the larger employers that have been hitting their staging dates; consequently it is frightening that NOW: Pensions has already experienced some of them failing to put in place an appropriate scheme in time.

 “If these larger employers with well-resourced HR departments can’t adhere to the rules, it does not bode well for 1.2 million of the UK’s small and micro businesses.

 “Unfortunately auto enrolment is not something employers can just ignore, and with a predicted capacity crunch looming as traditional pension providers shun the smaller end of the market, and many financial advisers choose not to advise on auto enrolment entirely, smaller employers need to act now to avoid potential non-compliance fines of £500 per day.”

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.