Seeking advice on pension reforms

90% of UK businesses intend to seek external expert advice to help them understand the impact of the Government’s workplace pension reforms due to be introduced from 2012.

New research has highlighted the role independent financial advisers and other professional advisers will have to play when NEST (National Employment Savings Trust), a new national pension scheme, is introduced.

The research also found that smaller firms are most likely to seek advice from accountants. This contrasts with medium-sized and large firms who are most likely to seek advice from financial advisers, a more suitable choice for pensions advice.

3,000 organisations across the UK were questioned in order to identify employer attitudes on seeking advice on pensions and the forthcoming reforms.

Starting in 2012, all employers will be required to enrol eligible employees into a pension scheme meeting certain criteria – a NEST. Employers will have to make minimum contributions of 3%. The total minimum contribution to workers’ retirement pots will have to equal 8% of the employee’s qualifying earnings.

Business owners should speak to their independent financial adviser about these new pension reforms to fully understand the implications of NEST, what it will mean for their employee benefits and how to best communicate the changes to their employees.