Auto-enrolment is on the horizon for thousands of SME businesses. NEST, the mass-market pension provider, thinks it has just made it easier for advisers to capitalise on the business opportunity.
Automatic enrolment into workplace pension schemes will hit thousands of smaller employers in about 12 months, meaning some 22,000 businesses will have to meet their duties over a four-month period next summer.
Many of those firms, and their bosses, will not have the time to do everything themselves and so will be looking to advisers for help.
NEST, the low-cost mass-market pension scheme set up by the government, believes it has made an important change in its operations to make it easier for advisers to capitalise on the business opportunity provided through auto-enrolment.
NEST launches delegated access option for advisers
It has adapted its systems to allow delegated access, with varying levels of permissions, to enable employers to hand over some (or even most) of the responsibility for things such as keeping pension contributions flowing, enrolling members and overseeing investment strategy, to their adviser.
NEST managing director, customer and proposition John Taylor told PA larger employers wanted to give different departments different levels of access, while smaller firms asked to have the facility to hand over responsibility to others leading to the development of delegated access.
He said: “We have been trialling this with IFAs, and they are very excited about it. Many employers have very little in the way of centralised resource, so they are looking for third parties to support them, whether it is for payroll or pensions responsibilities. That is why it is trialling so well with IFAs.”
Taylor said the facility to use delegated access was especially applicable to IFAs business models.
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