For some advisers, auto-enrolment (AE) is an unprofitable drag on time and resources; for others, its a once-in-a-career opportunity. Here, two IFAs explain how they would approach AE advice...
Director, Corporate Benefits Consulting
"We approach each case as an individual project and explain where work is required from scratch. We charge a nominal fee for an initial investigation looking at how many employees are likely to be involved, and provide several costed plans accordingly.
"Monetising an AE project is much easier with new clients. I am happy to provide a fixed price at outset following the initial investigation.
"We have worked on many corporate pension schemes and understand how much we should charge for each stage of the process.
Two advisers' tips for setting auto-enrolment advice charges
"There would be caveats written into the quotes, however. For example, if we had planned for a presentation to last for two days but it goes on for six, we would expect to be recompensed."
Director, Syndaxi Financial Planning
"A project should be broken down into its component parts, with each costed based on likely take-up of the scheme.
"We would likely provide cost breakdowns for a take-up of 20%, 40% and 70% of the workforce. Within each of these we would price the following elements: finding a provider and integrating with payroll; promoting the AE scheme to employees; working out how AE would work alongside an existing scheme; and assessing the type of ongoing service required.
"An adviser should know, roughly, how much they need to charge per hour to be profitable. I recently worked on a job for which we charged £7,800. The employer had received an alternative bundled quote for £1,000, which worked out at about £10 per employee - an unfeasible price. A bundled price like this will raise questions about an adviser's credibility."
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Three years at Wells Fargo
Effective from 9 December 2019