Automatic Enrolment pension will require accountant expertise and collaboration

With the Automatic Enrolment pension scheme nearing the staging dates for many small companies, accountants are going to be key in smoothing over the transition to help employers comply with the new pensions standards.

Staging dates for the new standard are spread between 2012 (for the biggest businesses) and 2017. The larger businesses have had to make the change first, and the smaller businesses in the country will have to make the change later on in this five year period.

David White, managing director at Creative Auto-Enrolment, told FTAdvisor that advisers need to work more closely with accountants to make the scheme work across the country.

“We need people to plan ahead and work collaboratively and make the best use of systems available,” he said. “Accepting the use of technology and streamlining of processes is crucial.

With such a big change needing to be made, it leaves a lot of room, and even demand, for financial advice regarding the new pension system.

“The payroll bureaux are run by accountants, the accountants are now seeing Auto-Enrolment as a revenue generator,” said Henry Tapper of First Actuarial. “There is money in managing the employer’s risk.

“We see packaged solutions emerging involving accountants, with book-keepers, payroll bureaux and advisers all working with providers.”