Top 5 reasons to review your employee benefits adviser

Blog  |     |   by Philip Thrush

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With so many fundamental changes in the pension world in the last 3 years, now is a good time to assess whether you are getting good value from both your adviser and also from your insurance company. With the majority of adviser fees that were previously paid from pension contracts having ceased, employers now have to come to terms with paying fees. Employers need to see added value from the fees paid to their pension adviser.


Have your advisers become complacent and do your staff value their service?

Many advisers do not offer advice to scheme members. This is partly due to the potential added cost to the company but also due to an unwillingness to advise on scheme investments. This results in members being funneled down a default investment route. At Helm Godfrey, we conduct regular investment meetings with clients, which allows the employees an opportunity to engage in the investment process and look for opportunities to suit their personal circumstances, rather than drift in the basic default lifestyle profile.


Legacy commissions result in higher scheme charges.

Insurers that have historically paid commission to a third party generally have higher Annual Management Charges (AMC) than the Nil Commission schemes that are now available. The market is now a level playing field and there may be better value plans available if a market review is undertaken.


How was Auto-Enrolment for you?

We are now approaching the 3-year anniversary for larger pension schemes and for many; the process has not been painless. For smaller companies we are approaching a period of capacity issue for the providers! Now is a good time to conduct an audit into how it went, to ensure that all documentation is compliant and the future process streamlined to ease the pressure on HR & Payroll.


Are your staff engaged?

With the advent of automated pension enrolment there has been a decline in employee/adviser contact in which they then have no idea what their pension plan is worth. This results in many not taking time to review what their retirement will provide them in the future. Education is crucial to ensure pension members do not sit back and believe that the minimum contribution levels will give them a comfortable retirement. Informative group presentations stimulate thought and avoid apathy. Helm Godfrey provides group pension and financial information presentations, in which are clients are receive great feedback on.


Have you outgrown your adviser?

Many smaller advisory firms have a long standing relationship with a few of the key decision makers in a business but may not have the administrative capabilities or experience to successfully assist the business through the changes in pensions. A new pair of eyes and a refreshment of the services delivered can stimulate re-engagement by staff.


If you would like to discuss any of these points in detail, please feel free to contact me at 020 7614 1000.

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