Is the Auto Enrolment Tsunami coming?

Auto enrolment - are you ready? Auto enrolment - are you ready?

Is your business prepared for pensions auto-enrolment? Business owners are leaving it late to put a scheme in place says Liam Wood of Wood Financial Services.

Liam Wood

Liam Wood

We often get asked, will advisers cope with the Capacity Crunch to provide bespoke Auto-Enrolment services? This is a difficult question to ask. Just like with their self-assessments, business owners are leaving it late.

The important point to bear in mind, is that only 8% of all the business that need to enrol their staff into a qualifying scheme have done so. There is another 92% of business to go!

This means about a third of the 1.8 million small and micros are due to stage (Put in place a scheme) in 2016 with the remainder staging in 2017.

When will the Wave Hit?

We think the proverbial will hit the fan around April 2016. We will see a perfect storm of large numbers of businesses staging and the release of the Quarter 1 2016 Compliance and enforcement bulletin. I think question will be, how many companies, rather than if they will fine companies.

The DIY Option

A comprehensive bespoke advised solution is estimated to take between 20 to 40 hours for an adviser to deliver, a solution that covers the 20 plus staging date tasks set out by TPR. (Source: Standard Life). Imagine the impact of the number schemes on your working week!

Words by Liam Wood of Wood Financial Services. For more information go to www.woodfinancialservices.co.uk