Half (50%) of employers still do not know how much auto-enrolment will cost them in terms of initial compliance and contributions in the first 12 months.
The JLT 250 Club research, by JLT Benefit Solutions, into the 2012 workplace pension reforms is based on the views of 250 employers with workforces ranging from 500 to more than 3,000 staff.
Of the 50% of employers that have ascertained their costs, estimates vary widely from less than £150,000, in 8% of cases, to over £10 million.
John Wilson, head of research at JLT Benefit Solutions, said: “What is clear is that most employers that have budgeted for auto-enrolment believe that the costs and the work involved in compliance will be significant, highlighting the importance of early planning.
“Those that have not ascertained direct and indirect costs may find that the reforms have the potential to undermine future business plans.
“Furthermore, given that 50% of large employers, with staging dates in 2012 or 2013, have not yet worked out their auto-enrolment costs, experience tells us that small and medium enterprises (SMEs), due to comply between 2014 and 2016, will be even more unprepared.”
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