View more on these topics

&#3924,000 firms breaking the law over pensions&#39

Nearly 24,000 UK firms with up to 1.28 million employees are breaking the law by not providing access to a pension scheme, according to research by Axa.

The survey found that 16 per cent of the UK&#39s 147,000 biggest companies, those with an annual turnover of at least £1m, are failing to meet their statutory requirements of providing employee access to a scheme. Under current law, any firm with more than five staff must provide access to a scheme.

The survey of 147,000 companies shows that a quarter of the 37,000 firms employing between 11 and 25 people with turnovers of £1m-plus do not provide access to a scheme.

Twelve per cent or 7,560 of the 63,000 firms with between 26 and 100 employers and 5 per cent or 2,350 of the 47,000 firms with over 101 employees fail to provide access to a scheme.

The survey also reveals that out of 123,000 company schemes in place, 78 per cent or 96,000 have less than 100 members. Seventy-one per cent of these schemes, or 87,300, are on a defined-contribution basis.

Axa says its findings offer IFAs a major opportunity to market their services to companies and raise awareness of firms&#39 duties as well as the need for retirement planning in general.

Head of pensions marketing Steve Folkard says: “This is a major issue requiring urgent action. It seems that companies of all sizes are unaware of their legal responsibility to provide access to a pension scheme.

“Although the survey has some positive findings, the overall impression is that for many companies, pensions are not a high priority. Many firms do not appear to be aware of basic information such as admin costs and contribution levels are often very low.”

Recommended

L&G hopes guarantees will help sell last-minute Isas

Legal & General is offering two protected growth plans in an attempt to motivate investors into last-minute Isa season action.The provider says it is hoping to attract investors who have been so far disenchanted by plunging stockmarkets by guaranteeing their initial capital will be protected if they keep money in the plan until October 31, […]

78% believe price cap will be raised

Most IFAs believe the Government will concede to industry demands and lift the 1 per cent price cap on stakeholder pensions, according to the Money Marketing/One Account State of the IFA Nation poll.The annual poll found that 78 per cent of respondents – 167 of the 215 IFAs who took part – are confident the […]

Outside edge

So “misselling” is in need of redefinition is it? Well that is Ron Sandler&#39s view but is he right? It is my contention that the current highly pervasive compensation culture is in need of far more than the simple redefinition of a word that has never had a definition in the first place.“Misselling” is not […]

Acorn Corporate Management – CellFactors

Monday, 17 March 2003 Aim: Growth by investing in the development of Skeletex and NeuCell Minimum investment: Lump sum £2,000 Opening/closing date: March 12, 2003/April 4, 2003 for 2002/2003 tax year, April 30, 2003 for 2003/2004 tax year Charges: None Commission: Initial up to 3% Tel: 0870 1225420

Nobody expects the Spanish Inquisition

Paul Fidell, Head of Business Development (Investments), writes about one of the primary challenges for those involved in estate planning. He looks at dealing with investment uncertainty in these low growth, low inflation but still volatile investment conditions. Protection of capital, to leave something for beneficiaries, is a fundamental objective of many people’s plans for […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com