The Pension Regulator has commissioned some research on what small employers want from pensions. I can share with you some of the key findings
“48% of small and 79% of micro employers currently have no pension scheme so will have to choose a new one as they prepare for AE”.
“Around one in ten will be self reliant and don’t know how to select a scheme or think it will be difficult (approx 130,000 employers).”
Our qualitative research suggests self reliant small and micro employers fear choosing a scheme and want to understand what schemes are available before making a choice –they will rely of a mix of personal recommendations, internet searches, comparison websites and TPR’s website for information.
Other SMEs will turn to their accountant or bookkeeper for assistance with finding a pension scheme, yet only 41% of accountants anticipate helping their clients with this and they are not necessarily better informed than their clients.
The problem does not go away in 2017 – approximately 200,000 employers are ‘born’every year, many of which will need to find a new pension scheme.
And this is what SMEs and micros are telling the researchers they actually want
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Simple practical steps on how to choose a pension scheme without having to understand scheme types
- Practical questions to ask to ensure the scheme is suitable (e.g. can I buy it direct, will it do everything I need to do)
- Shortlist of AE schemes available to them
- Ability to compare charges and any employer fees of shortlisted schemes
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Ability to compare wider AE support offered by scheme (e.g. workforce assessment , communications to workers)
http://www.pensionplaypen.com provides you with a simple search engine which allows you and/or your clients to understand the choice and download a full audit report on the decision taken.
To register for the service go to http://www.pensionplaypen.com/register.