Key Things To Consider When Switching Workplace Pension Providers

How To Switch To The Right Workplace Pension Provider?

By reviewing your existing scheme, you should get a better idea of what you need a new workplace pension to offer. This will help when it comes to choosing the right provider.

When looking for a new scheme, there are a number of things to consider. We cover these below.

What Providers Are Available?

Taking a look at the workplace pension providers available in the UK is key, so you will need to do your research. Doing so will help you better understand what’s available and allow you to compare providers. As an employer, you should consider the following points.

• Are They A Reputable Provider?
  The reputation of the pension scheme provider is another factor in your decision. Read reviews from past customers and businesses to get a full picture of the provider
• Do They Have Good Financial Strength?
  Financial strength ratings will give you an indication of how well providers meet their financial obligations. Ratings are based on things such as paying out retirement benefits, investment performance, governance and customer service
• Have They Won Any Awards?
  Awards can be an excellent indicator of a provider’s strengths. When comparing the providers, check what awards they have and what they’re for. As a part of this, you can also check their Defaqto rating.

What Fees Do Providers Charge?

Fees will differ from provider to provider. If you’re looking for a new pension that offers the best value to you and your employees, the prices are important. When reviewing providers, consider the following costs:

• Annual Management Charge (AMC)
• Annual fees
• Setup costs, including payroll configuration
• Monthly admin mins if applicable
• Adviser fees if using their services
• Default fund extra changes
• Any extra hidden costs, such as exit fees and transfer fees.

Will Switching Provider Offer Better Investment Funds?

Another important consideration is the investment funds available to your employees. Some might not be fussy about where their pension pot is invested. While others may have a preference and certain attitude to risk.

Your employee demographics can help you decide whether the provider is suitable. If staff have Islamic faith, a provider with Sharia-compliant options is essential, for instance. Or, your workforce may want to only invest in funds which have a low impact on the environment.

Most pension providers will have a good variety of investment options to suit different needs. This gives your workforce more flexibility and control over their investment choices.

What Support Do Providers Offer?

Managing a workplace pension scheme can be a time-consuming and complex process. So, when considering switching to a new provider, it’s vital to understand what support they can offer. This can have a significant impact on the success of a scheme.

When reviewing providers think about the following:

• Can the provider help with compliance and regulation?
• Will they help ensure mandatory information is communicated to staff?
• What additional information and guidance can they offer employees?
• Do they provide reporting and analysis of your scheme?

Do You Understanding The Switching Process?

When it comes to changing your workplace pension, understanding the switching process is vital. Not only will it give you clarity about how long the transition should take and who needs to be involved, it can help to:

• Minimise potential disruptions to ensure a smooth transition
• Manage any costs such as transfer fees or setup costs
• Ensure your new provider is compliant.

Getting Expert Workplace Pension Advice

Finding the best Workplace Pension provider and understanding which one is right for your business is a daunting task. It can also be highly time consuming. There are so many factors to consider it can quickly become overwhelming.

This is where getting help from an expert employee benefits adviser can really make a difference.

Although it will come at a cost, by outsourcing the management of your scheme to a third party, you can lighten your workload. They can ensure your scheme is running as it should and that, as an employer, you’re fulfilling all your legal duties.

At Drewberry™, we have experience helping businesses to set up and manage their workplace pensions. Our team can help to reduce the admin, saving you time and letting you run your business as usual.

To discuss further, feel free to pop us a call on 02074425880 or email help@drewberry.co.uk.

Joseph Toft
Senior Consultant, Employee Benefits

Not only this, a financial adviser can share their expert knowledge with you and your staff to make sure you’re getting the most out of your workplace pension. In fact, it could make you more desirable as an employer, with 1 in 3 employees saying that they want a company paid meeting with a financial adviser.

How Will You Communicate The Switch?

Another key consideration when it comes to switching workplace pension providers is communication. How will you inform your employees about the change?

It’s an important factor and can be the difference between a smooth transition and not. A clear communication plan can help:

• minimise confusion
• empower staff to make informed decisions about their pension
• make staff feel valued.

As an employer, you can benefit from prioritising communication to. It is a highly valuable benefit which can offer employees a great level of financial security. By making them aware of what’s on offer, you can provide them with peace of mind, which can reduce stress related to money worries.

It can also help to show them that as an employer, you care about them and their financial future. Employees who feel valued and appreciated are often more motivated, loyal, and productive.

Start Communications Early

It’s important to give employees plenty of notice before any changes take effect. This will give them time to understand and prepare for the switch.

By being transparent from the start will also help reduce any levels of uncertainty. It can also help improve employee engagement levels.

Be Clear & Concise

Workplace pensions can be complicated. Being presented with documents full of small print and jargon can be overwhelming and lead employees to disengage with the benefit.

Information you provide should be clear and concise, and presented in a way that is easy to digest. You need to clearly outline what the changes are and how they will impact the employee. To help make sure you make use of any guides and tools your new provider offers.

Use Different Channels

To make sure your employees clearly understand everything they need to about switching workplace pension providers, you need to provide consistent communication via a range of different channels. This can include:

• Email
• Webinars & 1-2-1’s
• Postal letter
• Online platforms.

Highlight The Benefits Of Switching Provider

It’s important to highlight the benefits of why you’re switching workplace pension providers. It might be that your new provider offers a wider range of funds including ethical options, or that you have secured a lower Annual Management Charge (AMC) so staff won’t pay as much.

Highlighting the new benefits can help increase employee engagement, which can help boost overall morale. It can also give you a competitive edge when it comes to retaining and attracting top talent.

Address Any Employee Concerns

Employers should be prepared to answer any questions or queries employees have about the switch. There may be concerns around fees, investment options or the potential impact the move will have on their retirement savings.

Many pension providers will send out a welcome pack which should answer any queries. But it might be a good idea to dedicate a team member (from HR or finance) as a go-to person for questions.

Need Help Switching Workplace Pension Providers?

It’s essential that you choose the right workplace pension provider when switching from your current one. But we understand this can be an overwhelming task. With so many factors to consider, it’s not a straightforward decision to make.

If you’d like extra support when choosing a pension scheme provider, you can speak to one of our advisers. They can help you pick the right one for your business and employees. Our team of pension experts can do the legwork for you and provide recommendations. They can even help you with the admin involved.

For expert advice, don’t hesitate to get in touch with us. You can call us on 02074425880 or email at help@drewberry.co.uk.

Why Speak to Us?

We started Drewberry™ because we were tired of being treated like a number.

We all deserve a first class service when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.

• We are award winning 🏆 independent insurance advisers who work with all the leading UK insurers
• You’ll speak to a dedicated expert from start to finish
• We are very proud of the 3900 and growing independent client reviews rating us at 4.92 / 5
• We are authorised and regulated by the Financial Conduct Authority. You can find us on the financial services register here 🧐
• Claims support when you need it most.