The auto enrolment band wagon rolls on and the latest statistics tell us that so far there has been a favourable response from workforces nationwide. Opt out rates are much lower than predicted and clearly this is good news in relation to the Governments original intention in building a self supporting culture in retirement.
So all is well, or is it? Based on the fact much of the cost of promoting self-sufficiency in retirement has been landed on the employers’ doorstep it is not surprising the number of business owner firms planning far enough ahead remains still very disappointing. Recent surveys continue to demonstrate that many employers are burying their heads in the sand and hoping the issue will go away. A poll last month revealed that 49% of SMEs and micro-employers understand little or nothing about the pension changes with 67% having no idea even of their staging date.
Here at Calvert Financial Solutions we continue to progress clients to a position of safety at a cost that satisfies an agreed budget using all the phasing and postponement tools available where appropriate. It’s important now that we continue to adopt a pro-active stance in helping clients get to grips with the auto enrolment challenge.
On 21st July 2014 the Government gave a green light to the radical rewriting of the pension rule book. The Government response to the ‘Freedom and choice in pensions‘ consultation delivers on the Chancellor’s Budget promise of much more pension flexibility and provides further detail on some of the changes in store from next April. This promise of pension freedom is set to encourage more clients to look in earnest once again at pension planning as a key component of a robust long term financial plan.
We believe that we should provide our Clients with a level of service and support that creates immediate auto enrolment solutions for their business, whilst also providing a structure that will assist their future growth and development.
Based in Inverness, our regional strength tends to lie in North Scotland and the Highlands and Islands, although we have clients throughout the UK. Our locality has been a decisive factor for many of our client firms and this is reflected in the strength and delivery of our services and accessible design and implementation support functions.
For auto enrolment specifically what can you expect from CFS? By working closely with you and understanding your workforce and your needs we will:
- Deliver a communications plan for your workforce
- Assess your workforce and estimate costs for you the employer
- Select the right pension scheme for you and your workers
- Arrange employee presentations to enable your workforce to understand what will happen and when
- Arrange for a face to face appointment with employees and give individual advice
- Arrange regular reviews to ensure that you the employer remain within the legislation requirements and avoid large penalties from the PR