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Small firms using accountants for pension advice

By rotide
Created 30/08/2011 - 08:54
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Small and medium-sized businesses are turning to their accountants for pension guidance rather than their advisers ahead of the 2012 workplace pension reforms, according to the Personal Accounts Delivery Authority (Pada).

A Pada survey tasked with setting up the National Employee Savings Trust (Nest) showed that 90% of UK firms plan to use external advice ahead of the reforms. Of small firms, with two to 49 employees, 67% will use accountants for external advice.

To encourage more people to save the Government is planning to introduce workplace pension reforms from 2012

"For many small firms, the introduction of automatic enrolment will be the first time they will need to provide an employee pension and make contributions. Ensuring they have access to the correct information will be crucial in helping them comply with the reforms," said Roy Porter, head of intermediary distribution of Pada.

To encourage more people to save in a private pension the Government is planning to introduce workplace pension reforms from 2012. From 2012 employers will be required to automatically enrol all eligible job holders into a qualifying workplace pension and to make minimum contributions into it.

However, 56% of medium-sized firms - those with 50 to 499 employees - expect to use a financial adviser. The survey also revealed that 54% of large firms with 500 to 10,000 employees also expect to consult a financial adviser, with 43% expected to turn to the services of employee benefits consultants (EBCs).


Source URL:
https://www.newbusiness.co.uk/articles/pensions-benefits/small-firms-using-accountants-pension-advice