Pension advice - National Employer Savings Trust

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Pension advice - National Employer Savings Trust

  1. 1. clear | concise | advice
  2. 2. The company <ul><li>Bright Thinking was created to provide financial planning advice to: </li></ul><ul><li>Private individuals </li></ul><ul><li>Companies </li></ul><ul><li>We offer a wide range of specialist services that include advice on: </li></ul><ul><li>Personal and corporate investment </li></ul><ul><li>Pension planning </li></ul><ul><li>Employee benefits </li></ul><ul><li>Whole of market mortgage advice </li></ul><ul><li>Protection advice </li></ul>
  3. 3. Our approach <ul><li>The success of Bright Thinking is built on – clear, concise, advice. </li></ul><ul><li>Advice that is: </li></ul><ul><li>Of the highest quality </li></ul><ul><li>Completely impartial </li></ul><ul><li>Tailored to our client’s specific requirements </li></ul><ul><li>Focuses over the long term </li></ul><ul><li>We can provide: </li></ul><ul><li>A full financial planning review or a review of several areas of need </li></ul><ul><li>Advice that is restricted to a single area of need, such as a pension review </li></ul><ul><li>Ongoing advice, reviews and management of arrangements </li></ul>
  4. 4. Service proposition <ul><li>There are four parts to our service proposition: </li></ul><ul><li>The ‘Initial Consultation’ </li></ul><ul><li>The ‘Review and Recommendation’ </li></ul><ul><li>The ‘Implementation of Recommendations’ </li></ul><ul><li>The ‘Ongoing Review Service’ </li></ul><ul><li>Further details of what’s involved in the above processes can be found in our </li></ul><ul><li>client service proposition document, along with details of our fees. </li></ul>
  5. 5. Auto enrolment & NEST <ul><li>What does this mean? </li></ul><ul><li>Auto-enrolment and NEST (National Employment Savings Trust) will start from 1 st Oct 2012 </li></ul><ul><li>Large employers with 50,000 employees or more will be eligible to start from Jul 2012 </li></ul><ul><li>The start date or ‘staging date’ as it’s being referred to depends on how many people are in your PAYE scheme </li></ul>
  6. 6. All employers will have to automatically enrol staff who are: <ul><li>Aged 22 to state pension age </li></ul><ul><li>Earning more than the income tax threshold (£7,475 in 2011/12 tax year). </li></ul><ul><li>Not currently in a qualifying pension scheme </li></ul><ul><li>Contribute at least 3% of employee’s salary </li></ul><ul><ul><li>Into: </li></ul></ul><ul><li>Either NEST, or </li></ul><ul><li>An alternative qualifying pension scheme (i.e. a personal pension scheme or an occupational scheme) </li></ul>
  7. 7. What does it mean for employers? <ul><li>In summary, each employer will be required to: </li></ul><ul><li>Select a qualifying pension scheme for automatic enrolment </li></ul><ul><li>Provide prescribed information on the scheme to their employees </li></ul><ul><li>Identify and automatically enrol eligible employees into the scheme </li></ul><ul><li>Accept ‘opt-in’ requests from other employees to join the scheme </li></ul><ul><li>Calculate and pay at least the minimum employer and employee contributions to the scheme </li></ul><ul><li>Facilitate ‘opt-out’ requests from employees who decide they do not wish to remain members of the scheme </li></ul><ul><li>Refund employee contributions for those who opt out </li></ul><ul><li>Undertake a re-enrolment exercise every 3 years for those who have opted-out, or who have subsequently left the scheme </li></ul><ul><li>Provide prescribed information to the pension scheme and to the Pensions Regulator </li></ul><ul><li>Retain records to evidence compliance with the rule </li></ul>
  8. 8. Our concerns <ul><li>Employers will be fined if their scheme is not set up in time for the ‘staging' date </li></ul><ul><li>The cost and time associated to the employer to set up and run the NEST scheme </li></ul><ul><li>There is a maximum contribution of £3,600 per annum </li></ul><ul><li>There is currently only a small range of funds available </li></ul><ul><li>The choice of funds is heavily influenced by the risk-averse attitude </li></ul><ul><li>It’s the employer’s responsibility to select the fund choice for the employee – if it doesn't then they will be automatically placed into the default fund </li></ul><ul><li>Transfers to and from NEST are not allowed </li></ul><ul><li>We believe this to be a perfect example of low charges = no advice!! </li></ul>
  9. 9. How can we help? <ul><li>We can confirm your ‘staging date’ and advise you when your scheme needs to be in place by </li></ul><ul><li>Ensure that employers can meet their disclosure requirements under the auto-enrolment legislation </li></ul><ul><li>As IFA’s we can compare the NEST scheme to alternative options i.e. a personal pension scheme </li></ul><ul><li>Look at a salary sacrifice model where savings can be made on NI contributions </li></ul><ul><li>We will be able to provide you with a wider choice of investment funds that cover a range of risk profiles, giving you a choice of investment strategies and lifestyle options </li></ul><ul><li>If we set up and administer the scheme we can take the majority of the work load away from the employer </li></ul><ul><li>You will have access to a dedicated pension specialist who you and your employees can liaise with </li></ul><ul><li>As part of our on-going review service we will review the performance of your scheme annually </li></ul>
  10. 10. Contact us <ul><li>Oxfordshire office </li></ul><ul><li>1 st Floor </li></ul><ul><li>36 South Bar </li></ul><ul><li>Banbury </li></ul><ul><li>Oxon </li></ul><ul><li>OX16 9AE </li></ul><ul><li>South West office </li></ul><ul><li>The Old Barn </li></ul><ul><li>Daccombe </li></ul><ul><li>Newton Abbot </li></ul><ul><li>Devon </li></ul><ul><li>TQ12 4ST </li></ul><ul><li>Call our free phone number 0808 1680611 and speak to one of our experts or email us at </li></ul><ul><li>[email_address] </li></ul>

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