Webb: Employers should not seek ‘expensive’ pension advice

Expensive advice

Oh we have an MP spouting about expensive advice. If it was not for the FSA etc, costs would not be as high as they are anyway. Does he not think that a small business has enough problems as it is without expecting them to sort out auto enrolment themselves. These are exactly the people who will need help from someone to ensure they they do not incur fines and penalties.I may be a small fantastic plumber with a couple of employees but my ability to deal with this sort of thing is crap. I will need help. Someone else living on another planet.

Posted by: terry

Government Knows best

MPs giving advice not to take advice , usual support of our profession then , and very condescending to small employers ,but government knows best,especially about pensions .....dont they ?

Posted by: Granny Grumps

exospensive advice

Stupid general comments from overpaid thieves. Fees are determined by the market place and MOT the advisor. I gave many clients whom the government would consider not to be worthy of advice, but very much needed it. Idiot.

Posted by: Steve Holloway

Damed if we do, damed if we don't

I think I will keep this article in a very safe place for when NEST and Auto Enrollment goes pear shaped. But don't be surprised if in 10 years time we are still blamed for the fall out on the basis that we were neglegent by NOT giving advice.

Posted by: Dr D

Ethical Investment

Quite apart from agreeing with much that has been said there are a lot of companies that want to offer their workers a good ethical option and whilst NEST has one ethical fund it has no history and only EIRIS screening. There is no reason why independent advice should be expensive or exclusive

Posted by: alan kirkham

I'll bet!

I’ll bet he doesn’t want small firms seeking INDEPENDENT advice. The small firms I deal with have had wind of this (most already fund pensions) and are asking (and willing to pay) for advice as to how to minimise the pain. The advice they’ll get will show them and their employees how to avoid this bloody nonsense. Just think if they have a pension in place and they just contribute single premiums – there is no contract and therefore no bureaucratic hoop la. The single premiums can be in excess of Auto Enrolment requirements, but this half-cocked system doesn’t recognise single premiums – and of course under existing methods (as above) there is absolutely no admin burden. Then of course without advice employers who do wish to institute Auto Enrolment just might utilise the Government sponsored NEST scheme – instead of what would seem to be the much cheaper alternatives coming into play. Advice would help them avoid this expensive mistake. So red faces all round – yet again. As ever what is so galling is the insulting way the Government thinks we are as big nupties as they are.

Posted by: Harry Katz