Appointing a Pension Management Services Company in the UK

The reasons

A good pension plan is designed to ensure that the employee’s future is secured by the amount that they will as pension upon retirement. The amount that is deducted from the employee’s monthly salary, together with employer contributions under the workplace pension scheme, is supposed to enable them to enjoy a good quality lifestyle during their retirement years.

Unfortunately for many employees this has not always been the case. Some people waste their money paying into dormant pension schemes that fail to produce the required results. It is therefore very important for employers to ensure that you find a reliable pension service management company that have a good track record of achievement and know the market.

In 2012 the UK Financial Conduct Authority (FCU) forced the pension providers to lower the forecast rates. This in turn led to the conservative rate dropping from 5% to 2% and the high growth forecast dropping from 9% to 8%.

The Issues

A BBC programme (Panorama) found out that some of the high street pension providers taking up to two thirds value from people’s pensions in commission and fees, which is inappropriate. It therefore follows that many workers in the United Kingdom face the risk of working a lifetime but having little money in retirement.

When you hire a trustworthy pension services management company there are many issues to consider and pitfalls to avoid. It is vital for any employer to consult with pension service providers that have a good reputation and cut links with any service provider that is deemed dormant or poor performers.

6 Considerations

Here are just but some of the factors that employers can be looking for to determine whether a pension service provider is viable or not. A good service provider should be able to: 

  • Track down all the previous pension payments for employees and transfer the pension scheme to one company.
  • Manage all the employees pension processing on their behalf.
  • Keep track of employees pension records and ensure all employee payments are processed accordingly
  • Follow up all retired employees pension claims and ensure they are paid
  • Find reliable pension service providers with the best forecast rates.
  • Link you with wealth management firms that are well regulated by FCA.

If you care about the welfare of your employees it is necessary to ensure that your pension plan service provider can meet all the above.

The most important and key factor is that the firm must be regulated by FCA since it is the only body that cares for employees welfare as much as pension is concerned. Further the firm must have a good and known reputation.

The Solution

For further information please follow this link to our partners for pension advice St. James’s Place Wealth Management – Warren House Chartered Financial Planners