North-East Financial Adviser Carterbar has expanded the service it offers ahead of major changes that will require businesses to establish pension funds for their employees.

The Teesside company has taken the step to counter a ‘deeply disturbing’ lack of awareness among employers and their staff about the dramatic changes that the legislation will make to their lives.

From 2014-15, the date depends on the size of company, the Government will require companies to start paying into employees’ pension funds and ensure that their workers do the same, unless they opt out. For larger businesses with HR and finance departments, and existing pension arrangements, the new National Employment Savings Trust  (NEST)  will not be a problem but it could present a challenge to smaller ones, according to Carterbar.

Carterbar Managing Director Arthur Dornan said: “This scheme has already been delayed once by the Government and yet we are still finding a deeply disturbing lack of awareness among both employers and their staff. At one recent business networking event I attended, I was horrified to see how few business people knew what they are being asked to do and yet NEST will make a huge change to the way they live and work.

“The impact will be felt mostly by smaller businesses.  They will not only have to manage these pension schemes but will also have to find the money to fund them. Under the scheme, employers have to pay three per cent of an employees’ pay into the fund and employees will have to pay four per cent. That is a lot of money for employers to find from cash flow and many of their employees have much more immediate priorities.

 “This will be a shock for some businesses and the more we speak to business people, the more it becomes apparent to us that it simply is not on many people’s radar.”

Craig Dyball, Director of Sales and Marketing, said: “This really is something for which  businesses need to be prepared. While big companies can do a lot of the work themselves, smaller ones will need help. That is where companies like ourselves come in. We can do the work for them, taking away a lot of the hassle that is involved in administering a pension scheme. To help our clients, we have increased the amount of pensions advice we are giving. We need to ensure that our clients are aware of the changes coming their way.”

Carterbar Operations Director Suzanne Cox said: “These changes are significant. It is part of the Government’s move towards making sure that people save for later life and businesses must make sure they are ready for the introduction of the new regulations. That means starting to plan now, rather than in 2014.”

Carterbar, which is based at Manor Way, on the Belasis Business Park, in Billingham, specialises in investments, pensions, mortgages, life assurance, income protection and medical cover.