18 pensions
How will auto-enrolment impact your business?
Auto-enrolment represents one of the biggest changes to pensions for many years. Once fully implemented it will mean that many employers and employees will be brought into pensions for the first time. Undoubtedly this is going to impact on the pensions market, but what will these changes mean for you and your business?
The auto-enrolment process is being introduced via a system of “staging dates“ which means that the legislation will be phased in between October 2012 and April 2017 starting with the largest employers first. In this respect, size is determined by the number of PAYE employees an employer had as at April 2012. At present only those employers with more than 4,100 employees will have been expected to comply with the legislation. While the process seems to have gone fairly smoothly for those employers who have already reached their staging date, as there are a limited number of employers in this category this cannot be taken as a sign of things to come and as the size of the employer decreases, so the number of employers expected to comply will increase.
The Pensions Regulator’s figures indicate that by November 2013 around 2,000 employers will reach their staging date each month. By May 2014 this will increase to 12,000 employers each month. By October 2014 it is expected that in excess of 50,000 employers will reach their staging date each month and by October 2015 this will increase to almost 200,000 employers staging each month.
So what impact is this likely to have on the pensions market? In order for employers to meet the requirements under the legislation, they will need to have a qualifying pension scheme in place. This can be with either a traditional pension provider, NEST (the Government established multi- employer pension scheme) or a NEST
UK pension scheme accountant of the year announced
Business and financial adviser Grant Thornton UK LLP was named pension scheme accountant of the year at the UK Pensions Awards ceremony held at London’s Grosvenor House Hotel.
Celebrating continuous improvement, and regarded as one of the most prestigious accolades in the industry, the award recognises the Grant Thornton pension team’s ongoing contribution to the UK pension industry and its high standards of client service over the year.
Judged by leading industry professionals, the pension scheme accountant of the year category acknowledged criteria metrics which highlighted Grant Thornton’s innovative approach to meeting client needs, its continuous improvement and outstanding performance, and value-added services for its clients.
Norman Armstrong, partner, based in Southampton, commented:
www.businessmag.co.uk
“We’re delighted to be recognised for our contribution to the sector. Our focus on value and efficiency is something our clients value us for, so recognition from our industry peers as a ’best in class’ team will undoubtedly keep us motivated to continue driving innovation in the field.
“Our presence in the industry, coupled with a deep understanding of our client’s requirements, positions us to not only meet our client’s needs to the highest of standards, but also to bring innovative thinking into the broader sector.“
Having also received the pension accountant of the year award in 2011, this is the second time in three years that the Grant Thornton pension team’s successes have been recognised by the scheme, which is hosted by industry magazine Professional Pensions.
www.grant-thornton.co.uk
competitor such as Now Pensions or The People’s Pension. Industry experts predict that the traditional pension market can cope with installing around 2,000 schemes per month. By May 2014 this clearly won’t be enough and the next question is will NEST and NEST’s competitors be able to pick up the excess?
Whether or not they currently have a pension scheme in place, employers can expect the following impact:
• Providers may pick and choose which pension schemes they want to take on, selecting only those that are likely to be most profitable for them.
• Prices may increase as a result of the strain on the market.
• Many providers are already saying
Class of 2013 reveals the changing face of retirement
Nearly a quarter of people planning to retire this year say they don’t feel ready to stop work yet, and more than a fifth say they don’t like the idea of being at home all of the time in retirement, according to new figures released by Reading- based Prudential.
Its ’Class of 2013’ research, the latest of its annual studies, tracks the plans and expectations of people entering retirement this year, and reveals a positive shift in attitudes towards retirement, despite the fact that it can be a financially-challenging time for many. Nearly six in 10 of people preparing for retirement this year say they would consider working past the state pension age.
This motivation for continuing to work on is not just financial. More than half of those considering working past state pension age believe it would keep their minds and bodies active and healthy.
Stan Russell, Prudential’s retirement income expert, said: “In the past,
people went from being in full-time employment one day to being retired the next. Retirement is much less of an event these days due to flexible working behaviours. Retiring at 60 or 65 years old is no longer a financial reality for many people, and the phased changes to the state pension age acknowledge this is the case.
“While feeling healthy and happy is part and parcel of enjoying retirement, it is important for people to enter this period of their lives with their eyes open. Expected retirement incomes are at a six-year low, and so it is important to plan ahead.“
Prudential’s research shows that the ideal employment scenario for those who would consider working past the state pension age is to continue working in their current jobs but with reduced hours. 30% would prefer to work in their current job part-time, while 10% would happily continue to work in their current job full-time.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – JUNE 2013
that employers staging after a certain date will need to “self- service“ and, unless they have an adviser in place willing to help them along the process, will not receive any support or help in the implementation process. Indeed, NEST is also likely to go along this route as auto-enrolment gets under way.
• Some providers may also start charging for auto-enrolment assessment tools that will be essential to many businesses if they are to comply with the legislation.
One Pension forecast that by early 2014 the market will be saturated and any businesses looking to receive help and support from knowledgeable and, more importantly, experienced advisers may find this difficult or costly to obtain.
Details: Sarah Munro or Sarah Walker
Sarah.munro@
onepc.co.uk Sarah.walker@onepc.co.uk 0118-9734420
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40