Auto-enrolment and the importance of technology
Automatic enrolment is gathering momentum, as thousands of small businesses now work towards their compliance deadlines.
2015 starts to see the volume increase with 45,000 companies staging. But with 110,000 in Q1 of 2016 also to stage we may see the end of 2015 as the real crunch point.
A lot has been made of the success so far of automatic enrolment, but with only three per cent of the UK having staged there is some way still to go. Will providers and advisers have the ability to cope with the sector’s automatic enrolment needs (and demands)? Only time will tell, and – at this stage – I firmly believe that technology will have a major part to play in supporting the small business sector with this compliance challenge.
A lot of automatic enrolment technology has come on to the market. Most (notable) organisations claim to have a solution, but often they can only support the organisation through part of the process. I’d argue that – so far – a gap has existed for a better end-to-end solution…
Traditionally, when it comes to pension support, companies have relied on consultants to get them the best pension and liaise directly with the pension provider on their behalf. There are a lot of manual processes – including the set up, implementation and ongoing monitoring.
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