The ae Auto Enrolment Alternative
Our solution uses a master trust provider with a low 0.5% contribution charge, meaning that more of the contributions get invested in your employees pension fund. As well as being multi-award winning, the pension provider that we work in conjunction with is also the largest private sector pension scheme in the UK, with over 1.2 million people auto-enrolled.
The relationship that we have with our pension provider allows us the benefit of registering a scheme for your business now, and it can remain dormant until you are legally required to begin making pension deductions.
NEST is the pension trust created by the government to accept pension contributions, and they have to provide a scheme if you apply. However, the cost to create the scheme has to be repaid to the Government, meaning an additional charge of 1.8% will be applied to all contributions in the first twenty years. This is in addition to the annual management charge of 0.3%.
This means that the NEST scheme will need to generate significantly better returns than other pensions in order to provide workers with similar investment returns at retirement.
In addition to this, NEST will have very little in the way of support, meaning that more of the administration and considerable associated costs will fall firmly on the employers’ shoulders.