New research has found that the majority of business owners are still unprepared for pension auto enrolment (AE), despite the fact that the scheme has already started rolling out.
Under the AE scheme, all employers will have to offer a pension plan to eligible employees. Those who don’t make the necessary changes will be subject to substantial fines. The scheme has already come into effect for the country’s largest employers, and will roll out to smaller businesses between now and 2015.
According to a new survey by Clifton Wealth, 90% of small business owners have not started preparing for AE, despite looming deadlines. Half of business owners said they do not understand what AE is, and 82% do not know the ‘ball-park’ cost of implementing AE.
Anthony Carty from Clifton Wealth said “Our research has shocked us in terms of just how serious the situation actually is. We are extremely concerned, both for employers and for specialist AE advisors, that an avalanche of requests to plan and implement AE is only months away.”