More than 30% of UK SMEs not preparing for auto-enrolment

More than 30% of UK small and medium-sized enterprises (SMEs) are not preparing for auto-enrolment, according to research by RSM Tenon.

Its RSM Tenon business barometer, a quarterly survey of senior management in SMEs, found that only 12% have fully forecast the costs of auto-enrolment.

The research also found:

• 23% of respondents thought that the legislation did not apply to them.
• 13% of respondents do not currently offer their employees a pension scheme.
• 8% of respondents were unaware of the pension reforms coming in from October 2012.

John White, head of financial management at RSM Tenon, said: “This research clearly shows that many businesses aren’t prepared for the new pension provisions, and I think that employees should be very concerned.

“Choosing a pension is a complex decision and not one that should be rushed into, and so it is important that employers spell out the options available to their workers well ahead of it becoming a legal requirement.”

Read more on pension reforms and auto-enrolment