1 million employees, that is a start.  1 million new employees in pension schemes, saving for their future, putting money away for their old age.  In reality this is from a very small number of very large firms (supermarket chains being the stand out employers) who have been able to put massive resources towards achieving Auto Enrolment compliance – Asda have reportedly spent over £1 million to roll out their compliant solution. These are large companies with deep pockets and large specialist teams (let’s not forget expensive external consultants, lawyers and HR experts!) that they could call on to overcome this business process problem – this is not a pension problem this is about compliance, business processes and administration.

Asda’s Steve Jones, when discussing how they achieved such a low opt out rate, emphasised “the importance of planning in achieving similar results and urged schemes to start their auto-enrolment project at least 12 months in advance but ideally 15”.

So what about the other 12 Million or so employees out there?  There are around 1.1 Million more firms that need to go through Auto Enrolment by 2018, so where do they get their support from? They are going to look to their Accountant or their Financial Adviser.

If you are an Accountant or a Financial Adviser, how comfortable are you that you can deliver a complete compliant solution. As we have said Auto Enrolment is not just about getting a pension in place; assessment, communications, reporting, administration and record keeping are just a few of the tasks within the compliance regime.

Many of the Advisers we have spoken to admit to feeling a bit lost and overwhelmed by the sheer scale of the work involved in providing a full end to end service.  The majority of employers do not have the resources of these headline making companies who are painting a rosy picture in the press which puts more onus on the Adviser.  1 million employees is a great start, the real challenge begins when smaller employers begin approaching their staging dates and by approaching we mean 12-15 months out.

In order to help their clients (and earn a fee!) Advisers should be pro actively speaking to their clients and putting plans in place to make the transition as smooth as possible.  It is important to remember that many of the solutions can be put in place and not paid for until the staging date is reached and actively used.  There is an opportunity now for Advisers to earn fees for managing the process and putting everything in place.

If you are unsure how to do all this then contact us.  We can help you by either filling the gaps in your proposition or managing the whole process from start to finish for you.