PENSION AUTO ENROLMENT – CLARKE NICKLIN ASK: ‘HOW PREPARED ARE YOU’?

Unless businesses have had their head in the sand recently, by now everyone should be aware of ‘Automatic Enrolment’ which was introduced in October 2012.

Now well underway with the target staging dates of small companies looming, Clarke Nicklin are asking: “how have attitudes changed towards this government induced scheme, and are employers prepared for the potential ‘capacity crunch’ as thousands more firms reach their legally binding date?”

Over 3 million have signed up so far and the DWP statistics for the large employers who have implemented the scheme show that the average opt-out rate to be 9%. Worryingly, those aged over 50 represented the higher proportion, maintaining reliance on a state pension. Factors such as gender, salary, full/part time and level of employer contributions did not appear to have an impact on opt out.

These figures will obviously vary for medium and smaller employers as they will have lower existing participation levels due to a lack of current pension schemes.

Auto Enrolment has and will have quite an impact on businesses. There are several ‘duties’ to undertake as an employer before, on, and after your staging date. When deciding which provider to opt for consider how much it will cost, what the cash flow impact is, and what pension scheme options are open to you.

Our advice is, plan early, and ideally engage a good IFA with strong experience in Auto Enrolment who will also be able to offer further benefits such as:

• Minimising the administrative burden by 95% (you legally have to do a tiny bit!)
• Reducing the cost burden through tax saving measures
• Ensuring the most appropriate and cost effective pension solution for the business

    Clarke Nicklin’s
    Independent Financial
    Advisors have achieved
    the ‘Certificate in
    Pensions Automatic Enrolment’. This was launched by the Pensions Management Institute October 2012 and is designed specifically to meet the needs of those advising on, or implementing the requirements of Auto Enrolment.

If you are confused by Auto Enrolment and the actions you need to take visit Clarke Nicklin