‘Huge opportunity’ for advisers with auto-enrolment, Nest
Director highlights opportunities for IFAs to get involved in corporate advice, urges forward planning.
There will be “huge opportunity” for financial advisers in the corporate pensions arena with the implementation of rules forcing employers to auto enrol employees into occupational pension schemes, according to the National Employment Savings Trust’s director of engagement.
Speaking in a video interview with Money Management, Graham Vidler, director of communications and engagement at Nest, said, “There must be huge opportunities in the corporate pensions market going forward,” adding, “Hundreds of thousands of employers will be called to duty over the next five years, including many who have little or no relationship to the corporate pensions market at the moment.”
Employers will need assistance with the practicalities of setting up auto-enrolment as well as choosing a provider, he added, so advisers should be able to add value.
Mr Vidler said that employers should be putting an auto-enrolment plan in place 12 months before their staging date, adding that a lot of preparation is necessary for things to run smoothly.
“For an employer to do it rightly they, working with their advisers and provider, probably need to be putting in place a programme of about 12 months from the point of choosing their scheme or schemes to the point at which their duties affect them,” he said.
Vidler said Nest has around 200 employers signed up already, from the smallest to the very largest, and said each one is different when setting up automatic enrolment.
“Every employer is fundamentally different,” he said. “They have all got their payroll set up in different ways, they have all got their workforce arranged in different ways, they have all got different mixes of existing pension schemes in place.
“In working with those employers and those advisers, what we are finding out is how to do auto-enrolment across a range of different employer types. The thing that comes across to us most clearly at Nest is it takes time.”
There are opportunities out there for advisers to get involved in the auto-enrolment space, Vidler added, saying that two or three employers had successfully delegated their pension management through Nest to their financial advisers.
To watch the video click here.