In this short blog we share findings so far from auto enrolment and tips for those who have yet to go.
Larger companies staged first, followed by medium sized this year. Most companies by number – the smaller companies – will start on staging dates in 2016 or 2017.
Top tips from those who have already been through the process are as follows:
1. Prepare early – larger companies recommended allowing 12-18 months for planning, and medium sized companies, 6-9 months
2. Get familiar with the requirements – this was reported as being a time consuming but important process
3. Choose your pension scheme with care – existing schemes won’t necessarily qualify and it’s important to consider how a new scheme will match your needs
4. Check your payroll software can cope – some software will take away more pain that others, and some won’t cope at all
5. Some tasks can only be done at the last minute – don’t waste time trying to anticipate the position for employees with variable earnings.
Employers so far have found opt out rates to be between of 9 to 12%, mostly among those closest to retirement age, with reasons being mainly practical, including affordability but also including distrust of big companies.
We have successfully helped a number of clients with their auto enrolment requirements, and guided some through the process from the start. If you’d like some help or have a question please do feel free to contact us on firstname.lastname@example.org or 07880 602226.