Auto Enrolment – should I take advice?

By Mattioli Woods

14 Dec 2015

As the auto enrolment legislation turns its attention to the smaller employers, the question of whether advice on the choice of provider is necessary has never been more relevant.

There has certainly been a shift towards employers opting for support in respect of auto enrolment compliance with a provider on a non advised basis. This may be a viable option however it is important employers are fully aware of the difference in the schemes available and the relevant benefits that may be foregone when proceeding with the non advised route.

Compliance is King

It could be argued that many employers simply require a low cost compliant solution for auto enrolment which will ensure they avoid any penalties from The Pensions Regulator (TPR). In this case, providing the pension provider meets the auto enrolment criteria, many employers are happy to choose the most affordable pension provider on the market and keep costs to a minimum. Many financial professionals now recognise this requirement and have subsequently developed a simplified Auto Enrolment Service which seeks to assist employers to comply with the legislation on a non advised basis.

What value can advice add?

As seen above, compliance is a central priority for many, however, the value of receiving advice on the choice of pension scheme is often overlooked and this still applies in the current auto enrolment market. Employers who choose to engage in a fully advised auto enrolment support service will ensure they receive a pension provider that is harmonized with their key objectives and existing processes.

Employers have the option of engaging with advisers who aim to source the best possible terms available in the pension scheme marketplace taking into consideration the fundamental objectives of the employer.

Things to consider

When choosing a pension provider, it is important employers are aware that some providers have sought to streamline their auto enrolment service resulting in reduced support for the employer from the provider on day to day activities within the scheme. This can lead to added time constraints for the employer who may be left to carry out duties themselves rather than their provider doing this on their behalf. Good examples of this are support in respect of scheme certification and the declaration of compliance.

In addition to this, the introduction of pensions freedom, effective from April 2015, has given the population food for thought in terms of how they can take their pension benefits. Unfortunately, as it stands, not all pension schemes available can provide the full flexibility required for members to take advantage of the pensions freedom changes which, from an employees point of view, would be a significant disadvantage.

Using their expertise and knowledge of the marketplace, pension and payroll advisers can look to source a provider that is most suited to the employers needs. This service can help offset the issues outlined above and ultimately deliver a more desirable outcome for the employer in the long term.

Summary

Taking the above into account, there is no right or wrong answer in respect of whether an employer should seek the assistance of an adviser to source a suitable auto enrolment provider. However, it is important that employers fully understand the key considerations needed when choosing a pension provider and whether they are comfortable making this decision on their own. Getting it wrong could be a costly experience for the employer as The Pensions Regulator is already imposing fines for non-compliance.

Latest news

1

Pleasure Beach Resort takes home four prizes at UK Theme Park Awards Pleasure Beach Resort’s David Hill, head of rides, and Stuart Cumming, marketing manager with the awards

Pleasure Beach Resort takes home four prizes at UK Theme Park Awards

18 Sep 2025

2

Brookhouse Aerospace invests more than £500k in additional machinery to support growth Brookhouse Aerospace machining facility

Brookhouse Aerospace invests more than £500k in additional machinery to support growth

18 Sep 2025

3

Growth Plan maps out £20bn-plus investment journey Mo Isap from the Lancashire Business Board with the plan

Growth Plan maps out £20bn-plus investment journey

18 Sep 2025

4

Post Office future secured as council explores new options Abington Street Post Office

Post Office future secured as council explores new options

17 Sep 2025

5

Airframe Designs supports new defence strategy with pledge to nurture talent Jerrod Hartley

Airframe Designs supports new defence strategy with pledge to nurture talent

17 Sep 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day
MTD drop in session.jpg.jpg
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day, Blackburn, BB1 5QB

10:00 - 16:00

The Marketing Metrics That Matter – Sept 25
Metris 25.09.png.png
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

The Marketing Metrics That Matter – Sept 25

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 11:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Chamber Breakfast Networking – October
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
07 Oct 2025 - 07 Oct 2025

Chamber Breakfast Networking – October

Soul Bowl, Morecambe, LA4 4BU

08:00 - 10:00

The Future of Work: Tech, teams and thriving in a changing world
Oct PTC.png.png
LBV Hub Networking
07 Oct 2025 - 07 Oct 2025

The Future of Work: Tech, teams and thriving in a changing world

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin