The Federation of Small Businesses plans to launch a low-cost pension scheme which will be made available to its 200,000 employer members.
The trade body is developing the FSB pension scheme with pension provider Scottish Widows and IFA firm Independent Financial Services.
FSB national policy chairman Mike Cherry says: “When auto-enrolment into pensions comes into force for the smallest businesses, there will be administrative burdens and confusion around costs and processes. That is why the FSB has developed its own scheme.
“This workplace solution has been designed to make the entire process easier for FSB members and their employees. Many of our members will value the advice and support they can access through this service. It is important that small businesses can be on the front foot when auto-enrolment begins for them.”
Scottish Widows head of corporate pensions propositions Pete Glancy says: “This proposition will enable small businesses to be better prepared and greatly reduce the potential cost and logistical impacts that could derail their business.”