Towergate Financial, the national financial planning and consultancy business, today announces the launch of a new and unique pension solution specifically for SME customers.
The new ‘Workplace Pension in a Box’ has been developed in partnership with HSBC and has agreed service standards which have been specifically designed for businesses with fewer than 20 employees. It is a simple, plug-and-play pension scheme which is easy to administer and will be used to meet the employer’s pension reform duties.
The new pension solution comes at a time of wide ranging reform to pension provision in the UK. From October 2012 , phased in by size of firm based on the number of employees, employers and their staff will be automatically enrolled into a pension scheme and business owners will have to pay a minimum percentage of an employee's salary into the company scheme.
However a majority of SMEs are concerned about the potential financial implications of government plans to overhaul pension provisions a new survey has indicated. Research conducted by the Association of Consulting Actuaries (ACA) found that 53% of the 404 SMEs polled believed the reforms will "significantly add to costs", while 29 per cent said they may cut pension contributions as a result.
David Taylor, Managing Director of Towergate Financial said, “We know that small firms do not feel confident in choosing a pension scheme because of its complicated nature and costs. So we have developed with HSBC a simple and cost effective solution, our ‘Workplace Pension in a Box’, which will enable SME’s to be ahead of the new legislative changes which will also help with their budgetary planning. Acting now is also a positive move for staff who will be reassured that their employer is making plans for their pension provision.”
For more information businesses should contact Nick McMenemy, Director, Corporate Solutions, Towergate Financial T: 08454 131373 M: 07791 714432 F: 08454 131367 www.towergatefinancial.co.uk Towergate and HSBC are both members of South London Business
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