The Cost of Delay
With fines ranging from £50 to £10,000 per day depending on the size of your business missing your staging date is certainly not an option.
Consider this – it has been estimated that there are 6000 pension schemes per year set up by the pension industry. As we move through to complete implementation of auto enrolment in February 2018 it is a quirk of the process that schemes are not rolled out an evenly spaced period, in fact it is the opposite!
At its peak in late spring 2014 demand is expected to be 12000 per month which compared to the current 6000 per year. The question is can the pension industry cope?
One trend is certain as many pension providers are getting very choosy about the schemes they take so leaving it to the last minute could be very expensive. Remember there is nothing in the legislation that states pension providers must accept your employees or even your business.
Planning early is the key. This has several benefits, you book your slot, so guaranteeing you have everything in place on your staging date. You can even fix your costs now so protecting the business from potential prices rises as demand outstrips supply when the peak is reached.