View more on these topics

Half of small firms struggle with auto-enrolment

Accounts-Paperwork-Financial-Corporate-Business-700x450.jpg

Nearly half of small businesses subject to auto-enrolment are unclear on the rules, according to research from the Federation of Small Businesses.

Around 45 per cent of 1,000 firms surveyed did not understand their responsibilities, the FT reports.

The research also found that 25 per cent of small businesses were worried they could not afford auto-enrolment, while three-quarters believed the reforms would put “too much pressure” on their businesses.

While large firms have already been through the auto-enrolment staging process, the next two years will see smaller business caught by the rules.

FSB national chairman John Allan says: “Our message for small employers is auto-enrolment is coming and will affect your businesses – and the sooner you get to grips with what you need to do the better you will be.

“Most of the businesses which have already set up a workplace pension told us they found the process fairly straightforward, but we know many remain concerned about their ability to cope.

“These businesses should feel reassured that there is plenty of information and support available to help them through the process.”

In his Autumn Statement speech in November Chancellor George Osborne delayed two planned increases in auto-enrolment minimum contribution rates, saving the Treasury £840m.

Under previous plans minimum contributions would have risen from 2 per cent of qualifying earnings, to 5 per cent from October 2017 and to 8 per cent from October 2018.

Now the rise to 5 per cent will take effect from April 2018 and to 8 per cent from April 2019.

Recommended

Money-Cash-20-Note-Currency-UK-700x450.jpg
2

Pressure builds on lenders to review maximum age criteria

Pressure is building on lenders to review their maximum age limits after two firms this week loosened their lending into retirement criteria. Prior to the Mortgage Market Review many lenders tightened their criteria when lending to borrowers whose loans extend beyond retirement or those wishing to borrower post-retirement. While many of the big lenders require […]

Business-Handshake-Finance-Deal-700.jpg

Succession buys four advice firms for £9.5m

Succession has completed deals to buy four member firms for a combined total of £9.5m. The consolidator has acquired Cornwall-based TMS, Sheffield-based Facts Financial, a Firth and Scott and Carson Associated, both based in Nottingham. The deals add almost £400m in funds under management, Succession says. The firm has now spent a total of £55m […]

Aegon-Logo-Building-2012-700x450.jpg
3

Aegon launches post-Pension Wise guidance offering

Aegon has launched a new guidance offering designed for customers who have already used the Government’s Pension Wise service. Aegon Assist, which is being trialled with a team of three staff, is targeted at customers who don’t have a financial adviser, and want more information about Aegon products. The service is open to customers at […]

19

Malcolm Murray: Why we need the return of the tied salesforce

It was inevitable the Government would come under increasing pressure to relent on some of the reforms introduced by the RDR.  My own view for some time has been that  life companies, particularly those domiciled in Europe, South Africa and North America, would not tolerate indefinitely having their control over distribution artificially restricted. The concern […]

Value for money in DC pensions

The Pension Policy Institute (PPI)’s recent report “Value for money in DC pensions” tries to identify factors by which people can assess whether their pension offers fair value for money (VFM). Fiona Tait provides an overview of the findings. Positive Outcomes It is extremely hard to assess VFM in a pension. Press activity naturally focuses […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Andy Robertson-Fox 12th January 2016 at 10:34 am

    Send for “Workie”!

  2. What they are struggling with is how to avoid the blasted thing, which is nothing more than an employment tax.

  3. Don’t know how the pension regulator will deal with the swathe of letters and fines it has to dish out. Maybe alphabetically?

Leave a comment