Auto enrolment costs

Auto enrolment costs

Wondering what you’ll have to pay when you’re up and running with auto enrolment? We’re here to guide you through the costs.

Costs you’ll need to consider

As with most things, when it comes to a workplace pension scheme it pays to shop around for the best deal. But don’t just think about the cost of auto enrolment – think about long-term value too.

Pension provider

The costs and ongoing charges of setting up and running a workplace pension vary depending on the pension provider that you choose. They each offer different levels of service and support, which should be reflective of the amount you’re paying to setup and run your workplace pension.

When looking at these charges, you might want to consider how much time you’ll be able to spend on your auto enrolment duties, and whether this could be reduced by choosing a provider with a more comprehensive package.

Payroll provider

For employers that have a staging date, running your new workplace pension will involve additional payroll duties. If you use payroll software, you’ll need to check that it has the functionality to complete auto enrolment tasks, such as assessing your employees’ eligibility.

From 1st October 2017, for new employers, auto enrolment duties and your PAYE duties will start at the same time. So it might make sense to choose a payroll solution that you can use for both. In terms of your auto-enrolment duties, the software might assess your workers and calculate contributions for you. The more the software does, the higher the charge is likely to be. The same will be true if you decide to use a payroll bureau.

Whenever your duties start, you’ll also need to make sure that you send the right communications to your employees at the right time – a crucial step in managing your workplace pension. If you need to upgrade your software to allow for this, there might be a charge.

Financial advice

An independent financial adviser can offer you support and expertise that’ll make auto enrolment a breeze, but the cost of financial advice varies depending on the level of support you require.

If you don’t already have a financial advisor, you can find one through Unbiased.

Communications

Part of making sure your workplace pension is compliant involves sending a range of regulatory communications to your employees.

Some pension providers will offer software that can issue these communications for you. Check if your provider does, and if not then consider the time and money that would go into producing auto enrolment communications yourself.

Late setting up your scheme

Setting up your auto enrolment duties late can increase the cost – both in terms of what you pay to set up the service and in fines that you may incur and have to pay to The Pensions Regulator. For more information on the cost of late staging, visit our fines and penalties page.

Pension contributions

As an employer, you’ll have to pay pension contributions, and your employees will have to make contributions to their own workplace pensions too. By law, the contributions that you make as an employer must meet the minimum contribution levels set for auto enrolment. Find out more about pension contributions.

How much does the Aviva workplace pension cost?

We charge an on-going fee each month to run your workplace pension scheme. The cost of this is generally £30-£50 per month, but it may be more depending on the size of your scheme - you’ll need to submit a quote in order to see how much this fee will be.

This charge is referred to as an employer pension charge. In return for this fee, we provide a software and support package that’ll help you with the administration involved in running your workplace pension.

We don’t charge any set-up fees.

Find out more about auto enrolment

Auto enrolment doesn’t have to be challenging. We’ve got all the information you need to get up and running with your workplace pension scheme.

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