Auto enrolment was probably a shock to your system, but now you’ve got a workplace pension scheme in place, it’s important not to rest on your laurels.
When auto enrolment came in, you may not have known much about workplace pensions. And that means you had a steep learning curve — with a strict deadline at the end.
With your deadline looming and the threat of a fine if you missed it, you may have plumped for a workplace pension scheme you’re now having second thoughts about.
You don’t have to stick with your original workplace pension scheme
Malcolm Goodwin, Head of Business Solutions at Aviva says:
“As one of the largest workplace pension scheme providers, we’ve seen this happening to lots of employers. But the good news is that you don’t have to stick with a pension scheme that isn’t working for you and your employees.”
It’s easier than you might think to switch to a new pension provider, so there’s no reason to put up with poor service, onerous admin or poor investment performance.
But even if you want to move, where do you start finding a replacement? If you have a financial or business adviser, they will be able to help you, but you can do some research yourself.
To help you, we’ve put together a list of the points to look out for.
Seven things to look out for in a great workplace pension
- Easy set-up — Look for a workplace pension scheme that is easy to set up and will help you transfer your employees quickly and efficiently.
- Works alongside your payroll software — Look for a workplace pension scheme that works seamlessly with your payroll software. It will help you save time and money and free up your staff to do more valuable tasks.
- Up-to-date technology — Look for a workplace pension scheme that uses efficient, modern technology to streamline the process. It will rid you of the need to carry out endless manual processes, which can only be a good thing.
- Employee engagement — Look for a workplace pension scheme that will work with you to educate your employees on the importance of their pension. The more they know, the more likely they are to engage with it and prepare for a better future.
- Investment performance — Look for a workplace pension with a good track record of investment performance. It’s not a guarantee of future performance, but it could give you an idea of how the investment managers handle the funds behind the pension scheme.
- Costs — Look for a workplace pension scheme that gives you value for money for what you get. The cheapest option might be attractive, but it could offer you limited options. If you want more support and an employee engagement programme, you might have to pay a little extra, but it could be worth it.
- Durability — Look for a workplace pension scheme that will last the course. A pension is a long-term investment, so look for a provider with established longevity, confirmed financial strength and a history of investing in the workplace pension market.
If you use these seven points as a checklist, you’ll be able to draw up a shortlist of providers. Alternatively, you could ask your business adviser to do this for you.
Whatever you do, there’s absolutely no need for you to put up with a workplace pension that no longer meets your needs. Both you and your employees deserve better than that.