Auto Enrolment Notice Landed
It finally happened! After months or is it years of government advertising we have been given a staging date for auto enrolment next April, 2017. Despite having been aware we realised we had a number of questions about the impact on the business. Where on earth do we start or what action do we take if any at this point? Are there any cost benchmarks or help with the process.
It seemed to be a good opportunity to review pensions and look at the options and implications. There seems to be a range of costs depending on who you know and how late you have left things. Perhaps you can get a better deal for your staff without it costing you more than the government NEST scheme?
If you have an IFA (independent financial advisor) you should perhaps start there. A good IFA will tell you about the process, provide various options and then steer you through the process. What you will pay depends on the amount of admin and management support you want. Your staff will certainly know how any fund is performing against the default government NEST scheme and take an interest in how their pensions are performing when they’re making a contribution to.
It’s probably a good idea to introduce the process and engage staff, letting them know that this is obligatory and that you are going to get the best deal you can rather than leaving it to the default government scheme which most of the commentators that I have spoken to think is lacklustre at best. Business owners who have engaged their staff in this process and used it as an opportunity to add a staff benefit have told me that this has had a positive effect on their business. Staff feel more valued if this handled well.
Why not start by having a free chat with Paul about the process and some of the options? Many local companies of all sizes, in particular, some of the larger ones went through the process last year and Low Cost Auto Enrolment Ltd have over 26 years pensions specialising in helping business owners.