Of the many questions that I get asked, “How and what do I charge for Auto Enrolment?” is still up there as one of the most regular.  Now I would like to point out that this question is being asked by some very good advisers; they have very successful businesses with good business models, quality clients and want to help their clients through the difficulties of Auto Enrolment (as well as the fact that they see opportunities in the future for additional solutions). So why are these good firms asking such a question – I believe there are a number of reasons, but the main one is that Auto Enrolment is actually really different from what an adviser would normally do.

Really good advisers are great with people, they empathise and understand their clients requirements and make recommendations (i.e. advise) against those requirements. The adviser knows that a particular product/solution will take in general “x” number of hours to complete and will involve these members of staff…easy…

Auto Enrolment is new and it has so many variables to it, it can make pricing a service really difficult.

At TAP Assist when looking at a solution for a client we look at three areas:

  • Data and Systems
  • Pension
  • Communication

We feel you should view things from a business problem point of view, a pension is not a solution for Auto Enrolment, it is part of it, but not the complete solution – hence the problems with pricing. Attached are three articles which discuss the potential ways to charge, with some examples of how Advisers are already charging for Auto Enrolment.

From our point of view, we think that charging a day rate (which could be split into an hourly rate) and working out a fair “Standard package” is the best way forward.  This allows you to offer add ons (employee advice, employee seminars etc) or if you need to spend more time doing something (such as analysing their current pension product) you will be able to easily explain what the charges relate to.

We discuss this and other aspects of designing your Auto Enrolment proposition in our training programme, we also cover off the following:

  • Auto Enrolment (staging dates, what is required to get employers compliant)
  • Middleware solutions (what is out there and their respective strengths and weaknesses)
  • How to create a robust Auto Enrolment proposition
  • How to pitch Auto Enrolment services to your clients
  • How to implement Auto Enrolment for your clients

If this is something that you would like to know more about, or if you would like more information on our training programmes then please get in touch.

*****We have now launched our AE Ready proposition which is designed to take away the problems of implementing Auto enrolment, while you offer the value added services like seminars, employee advise or guidance. Please get in contact for more information on this topic.****