Pensions  

Employers must embrace AE now

The divisional director at national financial consultants LEBC said: “Employers have no choice; they have to comply with AE, and the danger is that as more fall behind on their obligations the worse their problems will be.

“While at the moment the regulator seems to be lenient, sooner or later that will change and fines will be handed out, which nobody wants to see.”

With a range of services to help employers with AE, including an automated online solution, Mr Jones recommended a number of measures to help with AE commitments.

Article continues after advert

He said advisers should help employers look at who is responsible for the pension scheme’s functioning and check that the system they plan to use can cope. They should also ensure that the scheme has been checked by the Pensions Regulator and that it can deal with future changes.

Adviser View

Ian Jenkins, chartered financial planner and corporate services director for Hertfordshire-based Richmond House Group, said the advice process did not end at auto-enrolment. He said: “Careful financial planning can really help to ensure that pensioners keep hold of their hard-earned income.

“By making regular use of allowances and exemptions, and by generating income from the most appropriate tax wrappers, individuals can legitimately reduce the amount of tax that is deducted from their valuable income.”