Auto Enrolment – over 62% of small firms are unaware of their Auto-Enrol dates.
Although workplace pensions and auto enrolment have been with us for quite a while now, it is still being reported by The Pensions Regulator (TPR) that Hundreds of thousands of the UK’s SMEs are uncertain when they need to begin paying their employers’ pension contributions into their employees’ workplace pensions as part of as part of auto-enrolment.
Indeed, a survey commissioned by TPR, showed that only 38% of SMEs are aware of their staging date. Given that over the next 2 years that about 1.8 million employers will need to comply with the auto-enrolment requirements over the next 2 years, this survey suggests that well over 650,000 employers do not know when their auto-enrolment date is.
The executive director of auto-enrolment at The Pensions Regulator, Charles Counsell, says: “The challenge of ensuring 1.8 million employers meet their duties by April 2017 is significant and the research shows many employers are still not preparing early enough.”
How are SMEs Preparing for Auto-Enrolment?
The same survey revealed that 31% of small and 38% of micro-employers are most likely to use their accountant for help with auto-enrolment, whilst the numbers expecting to use their financial adviser for help is 20% of small employers and 15% of micro-employers. Worryingly, that leaves over 50% of small and micro employers for whom it is not clear if they will be asking for any help at all when it comes to auto-enrolment.
Charles Counsell goes on to say that “It is also positive that more advisers have stepped up to meet the needs of employers by developing new services ……. I urge all intermediaries to ensure they can fulfil this vital role as more employers seek assistance.”
At Pensions Management Limited, through our sister company, PML Financial Services, we advise on pensions, investments and insurance products (i.e. life and health cover), across a wide range of circumstances, and will be delighted to hear from any employers of small or micro businesses who need help and advice on auto-enrolment, Contact us or call us on 0121 693 0690.