Nearly two thirds (61%) of firms with up to 250 staff would like a list of recommended pension providers that accept smaller companies, research has found.
31 MARCH 2015 | BY CINTIA CHEONG
The study was carried out after the Pensions Regulator (TPR) decided earlier this month that they would not publish a list.
In a survey of 269 UK SMEs who are yet to stage, pensions provider NOW: Pensions said two thirds (66%) did not have any existing pension arrangements for staff, while 8% had a stakeholder pension scheme set up but did not have any members in it. These smaller businesses want a list of providers to help them comply with their auto-enrolment duties.
When selecting a provider, more than a quarter (27%) said they had not given any thought to how they would find one. In addition, more than one in 10 (12%) planned to search the market and do the research themselves.
When it comes to seeking external advice, 26% intended to seek help from their accountant; 16% planned to rely on their existing provider and 6% said they would speak to a financial adviser.
Morten Nilsson, CEO of NOW: Pensions, said the number of firms planning on choosing their pension provider without any advice was "inevitably going to grow". He said TPR's decision not to publish a list was "so disappointing".
"These firms urgently need help to find high-quality, low-cost providers willing to accept their business. The regulator needs to hear their pleas before it's too late," he said.
Last week, TPR published a web guide to help small employers "walk through" their legal requirements with auto-enrolment.