Four in five advisers (83%) that are currently advising on auto enrolment intend to continue advising small and micro firms in 2016, research* conducted by independent financial researcher Defaqto on behalf of NOW: Pensions has revealed.
This year, around 46,000 companies reached their staging date but in 2016 over 500,000 small and micro companies will begin having to comply with the new legislation.
Of the 248 advisers questioned by Defaqto, 38% admitted that the auto enrolment business they’ve received to date was less than they expected, with 36% claiming that the volume of business was “as expected”. Despite this, 60% of advisers say they are still currently advising companies on auto enrolment.
Of the 40% that aren’t advising on auto enrolment, the main reason given, cited by 42% of is that there’s too much administration involved while a third (33%) say that they believe it’ll take up too much time. Nearly one in ten (8%) think the most profitable part of the market has gone while the same percentage think there’s no demand for advice from small and micro firms.
Looking ahead, nearly a third (32%) of advisers anticipate future auto enrolment business will come from existing clients. Nearly a quarter (24%) think the work will come via work with accountants while 23% expect to be providing advice to employers directly.
Aimed at professional advisers, large employers with in-house pensions expertise and those with a sound knowledge of pensions, our guidance provides detailed help with implementing the new employer duties.
Updated April 2015: The guidance has been updated with the qualifying earnings thresholds and the earnings trigger for automatic enrolment for 2015-2016. In addition the Department for Work and Pensions has made recent technical changes to the legislation to the information requirements and the qualifying criteria for defined benefit (DB) schemes and to introduce four new exceptions from the duties. These changes take effect from 1 April 2015.
The guidance has also been updated with these changes to the legislation in particular:
Detailed guidance 4: updated with the new alternative qualifying criteria for DB schemes.
Detailed guidance 10: updated with the new information requirements.
Detailed guidance 1, 3c, 6, 10 and 11: updated with the new exceptions from the employer duties.
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Please read the essential guide to automatic enrolment that outlines the main steps you will need to be ready, before reading our detailed guides.