Act now

Two of the main workplace pension scheme providers have recently imposed a charge to employers.

The People’s Pension added a £500+VAT set up charge for employers signing up after November 23, 2015, reduced to £300+VAT if they sign up through a financial adviser.

NOW: Pensions has a monthly service charge ranging from £12.50+VAT to £36.00+VAT depending on the number of employees and whether the employer has a scheme administered by a payroll bureau using the NOW: Pensions' microsite. 

Jon Drysdale, an independent financial adviser from Chartered Financial planners PFM Dental, says: “Even though your ‘staging date’ – when you start making contributions to a pension scheme – may be many months away, it makes sense to get your scheme set up as soon as possible to reduce the risk of future set up or service charges being imposed. It is hard for pension providers to add charges where employers have already signed terms and conditions, so my advice is act now.”