I don’t know how large your company is, but for the majority of medium sized employers in the UK, auto-enrolment crunch time is 2014. By the time you read this, approximately 18000 employers have been through this process.
Now this sounds a lot, but it’s the equivalent of the employers staging in six weeks of 2014.
Pension providers are about to get busy and you should start hearing more about the “capacity crunch”.
We will start seeing something that no one outside the pensions industry expected – providers turning business away in droves.
For pension providers it’s simply a case of profitable business, with some small employers paying minimal contributions, it’s just not in their interests to open a new pension scheme, their break even time on that business might stretch up to ten years.
So who will take the business and who will still be standing at the end of 2014?
Rob Barksfield
Auto-enrolment Consultant
Telephone: +44 (0)20 7893 3456
Email: contactus@broadstoneltd.co.uk
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