Personal Accounts to cost employers £3bn per year

clock

Personal Accounts will cost UK businesses almost £3bn each year after 2012, according to consultancy firm, Mercer.

The firm warns that employers will struggle to meet the costs involved in the scheme if the economic environment has not significantly improved. Companies with a low uptake of their own pension offering are likely to suffer the most, Mercer says. The firm is encouraging employers to plan ahead for ways to reduce the costs of auto-enrolment and to free-up funds elsewhere to pay for increased contributions. "The introduction of auto-enrolment will have a dramatic impact on company remuneration budgets, especially for those companies with a low current uptake of membership in their pensi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers turn to smoothed funds to help manage volatility threat

Advisers turn to smoothed funds to help manage volatility threat

Decreasing exposure to equities also a popular strategy

Isabel Baxter
clock 26 March 2024 • 1 min read
Examining the 60/40: Building diversified portfolios in 2023

Examining the 60/40: Building diversified portfolios in 2023

Advisers have a lot to consider when it comes to portfolio diversification

Charlotte Moore
clock 14 April 2023 • 6 min read
Schroder Investment Solutions expands distribution of MPS

Schroder Investment Solutions expands distribution of MPS

Expanding the range of DFM choice on the Parmenion platform

Ayesha Venkataraman
clock 06 December 2022 • 2 min read