AE, can you help me? IFAS and Accountants luck out
A recent report by the Department for Work and Pensions (DWP) discovered that many employers are taking the minimum steps to comply with auto-enrolment rules and are turning to IFAs and accountants to outsource their pension duties.
This latest report found that employers who were new to the market were seeking just enough information to become compliant and that the process was almost always prompted by a letter from The Pensions Regulator (TPR).
The report also found that workers were not getting the information or even option sometimes, to save more for their retirement and instead taking the minimum contribution alone.
There has been a notable increase in employers who are now turning to IFAs and accountancy firms to help manage their AE obligations. Some employers have even turned to family members or colleagues who have experience with automatic enrolment.
Employers are now prepared to pay a management fee to an intermediary to ensure workers are not only getting the stipulated amount but also to deal with requests from savvy employees who wish to top up their pension plan or find a new provider.
The report also highlighted a lack of desire from employers to educate themselves on the AE rules and of those who conducted the process themselves, undertook limited research, usually focused on a visit to the potential provider’s website, and “skim-reading” the topic online. Very few employers spent any time researching the compliance requirements.
Many new employers are selecting the first pension offered, often opting for the National Employment Savings Trust (Nest), unless prompted to do otherwise by an intermediary or other outside source.
We here at OptEnrol can confirm the finding of this report as we are seeing people turning to us for help to ensure their AE obligations are being met and to help ease their already busy work load.
And let’s face it, everyone needs a little help sometimes.