When auto-enrolment first came in, thousands of businesses were placed into pension schemes such as NEST, People's Pension and NOW: Pensions.
These providers played an important role in helping employers get a workplace pension in place and meet their legal obligations.
At the time, the priority was getting businesses compliant in a simple and efficient way. But the market has moved on, and many businesses are still using the same pension scheme they set up five or ten years ago.
The question is, would they choose the same scheme today?
The Market Has Changed
When auto-enrolment was introduced, employers didn’t always have a huge amount of choice. The simpler, more accessible schemes filled an important gap, particularly for smaller businesses. Today, there may be more options available.
Some employers who have never looked beyond their original scheme could now have access to pension providers offering a different level of service, investment choice and support. That doesn’t mean every business needs to change provider. But it does mean it’s worth checking what’s available rather than assuming your existing arrangement is still the best fit.
What Could a Review Uncover?
A workplace pension isn’t just about meeting your legal obligations. It’s also about helping your employees save for their future.
Depending on the scheme, a review could identify:
- More investment choice, including a wider range of funds for employees with different needs and attitudes to risk.
- A better member experience, with improved online access, apps and tools to help employees understand their pension.
- Better support for employers, including administration, reporting and ongoing service.
- Competitive charges and better value, without necessarily increasing costs.
Investment options and performance histories are also worth looking at. Employees have different needs, and it’s important to understand whether the options available through your current scheme remain suitable.
The point isn’t that a different provider will automatically deliver better investment returns. It’s about making sure the scheme is still fit for purpose and offers good value for both the business and its employees.
It's Also About Your People
Pensions can sometimes get overlooked when businesses think about recruitment and retention. Salary will always matter, but the wider benefits package can make a difference too.
A workplace pension is one of the few benefits that can have a lasting impact on an employee’s financial future. Making sure it’s competitive, easy to understand and supported by good service is a worthwhile part of looking after your team.And if you can improve the pension offering without increasing costs, surely it’s worth exploring?
What About Accountants?
Accountants are instrumental in helping many businesses navigate auto-enrolment. Their focus was rightly on getting a suitable scheme in place and ensuring clients met their obligations. But setting up a pension and carrying out a detailed review of the wider market are two different things.
For accountants, this can be an opportunity to help clients take the next step. A specialist review can look at the existing scheme, charges, investment options, administration and employee experience, then compare it with what’s available elsewhere. There is no assumption that a business needs to switch. The aim is to understand the options and make an informed decision.
When Did You Last Look At Your Pension?
Most businesses wouldn’t leave their insurance, utilities or other key suppliers untouched for years without checking whether they’re still getting the best deal. Workplace pensions deserve the same attention.
If your scheme was set up years ago and hasn’t been reviewed since, now could be a good time to take another look. Your business has probably changed, the market has changed, and the pension you chose back then may not be the best option for you today.
Article by Dave Sykes
Employee Benefits Consultant
If It's been a while since you last looked at your pension, let's have a chat.
We can look at what you’ve got in place, compare it with the options available today and help you decide whether there’s a better fit for your business and your employees. You may be perfectly happy with your current scheme — but at least you’ll know you’ve checked.
Money Mindset: Pensions
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