Automatic enrolment is fast becoming a reality for hundreds of thousands of smaller firms across the country. While so far auto enrolment has proved a success, for pension providers, advisors, payroll software and payroll providers, the coming year presents a huge challenge.
As at the end of September 2015, The Pensions Regulator’s automatic enrolment declaration of compliance report tells us nearly 61,000 employers have complied and nearly 5.5m employees now have a workplace pension.
But, while we’re halfway through the auto enrolment timetable, the 61,000 who have complied represent only 3% of the total number of employers that have to comply. The industry now has to support the remaining 97% in roughly the same amount of time. In numbers this represents c.1.8m employers of which 66% (1.2m) employ less than five members of staff.
Research that NOW: Pensions conducted with small employers in March 2015, revealed:
- 1 in 4 employers will seek guidance from their accountant
- 1 in 10 will research the market themselves
- 1 in 20 will seek support from an independent financial advisor
When preparing for auto enrolment, it’s important to remember that it isn’t simply about pensions
Payroll, project management and process are critical and must be considered in conjunction with the appointment of the pension provider.
Employing the services of the right auto enrolment specialists can significantly ease the burden and an organisation that pulls together these key components for smaller employers has recently been created in the West Country.
“Automatic Enrolment Somerset” is a group of specialists from around the Somerset area whose aim is to make life easier for employers on their automatic enrolment journey.
Upcoming events include a free seminar in Taunton on the 26th November 2015 where the keynote speaker will be The Pensions Regulator. Registration for this event can be completed here.
Please contact Adam Tudor, NOW: Pensions Regional Partnership Manager for further information:
M: 07899 901 885