350,000 businesses yet to set up pension scheme risk 50,000 fine
Get your Stakeholder facts straight - see an IFA to discuss your optionsNew research from IFA Promotion, the organisation promoting the benefits of independent financial advice, reveals that, a month after their official launch, awareness of Stakeholder pensions amongst small to medium sized businesses has risen to 77% (up from Februarys 70% figure). Yet still only 29% of this target group has set up a Stakeholder-compliant pension scheme for employees (no change on February).
The research also highlighted that almost half (46%) of employers surveyed are unaware of the potential 50,000 fine for not setting up a scheme, yet a staggering 350,000 companies are laying themselves open to this penalty by not having in place a stakeholder compliant pension plan
IFA Promotion is urging firms in this position to seek professional advice about setting up the most appropriate scheme companies can call the freephone IFA Promotion Business Hotline on 0800 085 3251 or visit www.unbiased.co.uk for details of local independent financial advisers offering corporate pensions advice.
David Elms of IFA Promotion said, Firms are slowly starting to find out about Stakeholder, but clearly very few know what to do next. Choosing the right product from the baffling array of Stakeholder and other group schemes on offer is far from easy- employers cant afford to be complacent with a 50,000 fine dangling over their business.
The research also revealed:
Antiphathy towards Stakeholder pensions is widespread with 41% of businesses questioned having neither a positive nor a negative view towards them.
47% of businesses heard about Stakeholder via the media (as opposed to 28% in January).
Whilst 46% of all businesses remain unaware of the potentail 50,000 fine (deadline October 8th 2001), within the more vulnerable small business sector (turnover 50,000- 100,000) this figure rises to 61%.
70% of those questioned are likely to take advice from an IFA, with this figure rising to 80% when looking at larger companies (turnover 500,000+).
David Elms said, With a number of product providers revealing their Stakeholder offerings, now is the time for firms to sort out their pensions arrangements, before the inevitable dash to meet the deadline. An independent financial adviser can track down the scheme which best suits them, saving valuable time, money and worry.
IFA Promotion also offers a free guide for small businesses providing useful tips on Stakeholder pensions. This guide is available by calling the business hotline on 0800 085 3251 or by visiting www.unbiased.co.uk. Callers will also obtain details of local IFAs focusing on the corporate pension market.
For further information please contact:
| David Elms CEO IFA Promotion 020 7833 3131 | or | Shellie Wells/Pippa Russell |
Research conducted by Continental during April 2001 of businesses with turnover up to 1 million per year. For more detailed questions regarding the research, call:
Tom Stacey
Continental 0207 490 5944
Notes to Editors
1. Independent Financial Adviser Promotion
Independent Financial Adviser Promotion Ltd. was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents over 9,000 registered individual independent financial advisers across the UK and is sponsored by 31 leading financial institutions.
IFA Promotions central belief is:
"Consumers have a right to financial advice that is independent of the providers of financial products - i.e. independent financial advice."
Furthermore independent financial advice should be:
Affordable. The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.
Convenient. IFAs should be available in the location of the consumers choice, wherever they live in the UK.
Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotion's sponsors
Barclays Global Investors Funds | Prudential Intermediary Division |
BUPA | Scottish Amicable Life Plc |
Canada Life | Scottish Equitable Plc |
Clerical Medical Investment Group | Scottish Life Assurance Company |
Dresdner RCM Funds (UK) Ltd. | Scottish Mutual Assurance Plc |
Eagle Star | Scottish Provident Institution |
Family Assurance Friendly Society Ltd | Scottish Widows plc |
Friends Provident | Standard Life Assurance Company |
INVESCO Fund Managers Ltd | Sun Life |
Investec Asset Management | Swiss Life (UK) plc |
Legal & General | The Skandia Group of Companies |
Merrill Lynch Investment Managers | Tunbridge Wells Equitable Friendly Society |
National Mutual | UNUM Ltd |
National Savings | Winterthur Life UK Ltd |
Norwich Union Life | Zurich Life Assurance Company |
NPI |
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