New auto-enrolment star ratings to help advisers compare schemes

A new star ratings system has been developed to make auto-enrolment schemes instantly comparable. Financial product researcher Defaqto has launched the system which it said will aid financial advisers and small and medium size enterprises.It provides an at-a-glance view of where a wide range of qualifying schemes sit in the market – something that Defaqto said advisers had been asking for.The ratings cover 40 auto-enrolment qualifying schemes from across 18 providers, giving from 1 to 5 stars, based on the quality of the proposition being offered. The most comprehensive schemes get a 4 or 5 rating.{desktop}{/desktop}{mobile}{/mobile}Defaqto said the system allows advisers to:• Select schemes based on the days left before the SMEs staging date – which may help SME's that are facing fines• Exclude solutions that do not meet an SME's business size and/or contribution requirements• Compare group personal pensions and stakeholder schemes with a proposed auto-enrolment one and identify the differencesRichard Hulbert, insight analyst at Defaqto, said: "The Pensions Regulator suggests SMEs start to plan for auto-enrolment a year in advance."However, their own figures show many start the process much later."SMEs beginning the process late are limiting the advice they could be receiving on payroll improvements (which could cost them thousands of pounds over time) and the providers willing to accept them. Both factors make it difficult for advisers to help them."Our Engage software can enable many of these late starters to be advised. It empowers advisers to undertake research on all known solutions based on the SME's workforce, needs and available time to staging."Mr Hulbert added: "The real time saver is that Engage instantly creates a comprehensive and compliant report for the adviser to use."

New auto-enrolment star ratings to help advisers compare schemes

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