DISCLAIMER: “This is a post written by Steve Speed an IFA (Independent Financial Adviser) & Employee Benefit Consultant from People and Business Independent Financial Advisers – www.pandbifa.co.uk.
Steve and K A Farr & Co are forming an alliance to help employers with the auto enrolment for pensions.”
The UK’s smaller employers have enough problems to deal with and the majority of them don’t need anything else to deal with. The latest pension legislation with the onus being on the employer is most probably not at the top of your to do list.
Well, in your position I think the best option would be to outsource this one. From the benefit of my experience as an IFA in the employee benefit market I would suggest the following actions to sort out your Auto Enrolment pension provision:
Take action as soon as possible. The Pension Regulator recommends taking 12 months to plan for Auto Enrolment. Given the limited capacity of both pension providers and qualified and experienced independent financial advisers (IFA) I would suggest you get the pension scheme set up as soon as possible. You don’t need to contribute until your Staging Date (or shortly after using postponement).
Select a pension provider with a good strong default investment option. Your IFA can guide you on this. If your staff are being automatically enrolled into a pension the investment pedigree for the pension needs to be good. As the employer you need a report to confirm this to your staff. Work with an IFA and pension provider who can liaise and form a team based approach with your payroll provider (K A Farr & Co). Your payroll system needs to communicate well with the pension provider.
Ensure that you are working with an IFA with the relevant employee benefit experience. Beware of the non-advised models or the IFAs who have only just entered this market for Auto Enrolment. They may not understand all of the issues.
Get a fixed fee quote for Auto Enrolment. This should be straight forward and relatively low cost if no existing pension provision is in place.
Please don’t under estimate the potential capacity problems in the market. Take action now on this issue; you don’t need to be caught up with the crowd when it will take you longer to sort out Auto Enrolment, the cost of advice is likely to escalate and both providers and IFAs may withdraw from the market.
Working together with K A Farr & Co, your local Chartered Accountant in Southport, we can provide you a straight forward, low cost option for the majority of cases by addressing this early.
Should you wish to discuss Auto Enrolment please contact me via email or the phone number below.
Steve Speed – IFA & Employee Benefit Consultant.
People and Business Independent Financial Advisers.
0151 546 1969 or firstname.lastname@example.org.