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Just 8% of firms know stakeholder start date

Only 8 per cent of UK businesses which are aware of stakeholder pensions know the legislation will be introduced this year, according to research by BACS.

The company says among businesses there is a high level of confusion and misinformation surrounding stakeholder, which is launched in April.

BACS surveyed 461 businesses across a range of sectors in the second half of last year.

Its research reveals that only 17 per cent of those businesses aware of the existence of stakeholder recognised their duty to provide a nominated scheme for employees.

It also showed that a quarter of respondents with no existing occupational pension schemes said they would definitely not be offering stakeholder pensions.

When asked about the best source of stakeholder advice, IFAs were the most popular choice, with 35 per cent of the votes, while banks took 24 per cent of the vote.

Just 6 per cent of businesses said they would contact a pension provider directly for advice.

BACS marketing manager Peter Blake says: “It is a concern that small businesses most likely to be affected by stakeholder pensions are also the least likely to be aware of the legislation.

“Equally worrying are our findings showing those claiming to be in the know are often completely misguided about the relevance of legislation to them.”

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Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
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