Auto-enrolment Pensions Set-Up Could Cost Small Businesses £317m

Thousands of UK small and micro firms are "unnecessarily" spending out on compliance advice from experts to set-up pension schemes

Auto-enrolment Pensions Set-Up Could Cost Small Businesses £317m

 

Over the next three years the UK’s small and micro businesses will spend an estimated £317m on automatic enrolment (auto-enrolment) workplace pension set-up costs, research from Paycircle suggests.

With around 1.8 million small firms required to set up a workplace pension between now and 2018 – 500,000 having done so already in 2016 – the research predict that many of these businesses are spending an average of £440 for advice on auto-enrolment compliance.

See more: Auto-enrolment – What it means for your business

Paycircle has claimed that in many cases this complaince expenditure is unnecessary as some smaller companies are exempt for auto-enrolemnt, some providers do not charge set-up costs, and others automate the set-up and contributions process.

Catherine Pinkey, co-founder of Paycircle, commented: “We need to debunk the myth that only an expert can take care of your auto-enrolment because it’s highly technical: that’s what certain advisers may want you to think but the reality is quite the opposite.

“It doesn’t have to cost a penny and, for smaller companies, can be done in little over an hour.”

1 Comment

  1. It can be done for nothing and I do agree with some of the stuff your saying, but how does the caring employer know how to chose the best pension fund for their employees and know that they have done due diligence. Is it better to spend a little now than have a disgruntled employees with a rubbish pension pot in 5 – 10 years time.

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