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Smart Pensions charges £15 plus VAT / month

Is it fair that Smart Pensions charges £15 plus VAT / month without consultation?

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I directed many of my payroll clients to Smart Pensions - mainly because of the excellent telephone support, but also because of zero employer charges

Now I have received notification, without any consultation, that they will be charging £15 + vat per month.  It may not be significant to the big employers, but the small one employee guys will be significantly impacted.

"To improve the service we offer, we are introducing a new £15 + VAT per month employer charge from 1 December 2021. This will allow us to invest in our platform so that we can improve our service, as well as introduce new features and products to make your and your clients' lives easier."

Yes I know, that actually one employee pensions are relatively more expensive to run, but if you're only paying £40 per month into a pension, being charged £18 for the privilege is a bit steep

Any comments or suggestions

BB

 

 

Replies (13)

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By Winnie Wiggleroom
25th Oct 2021 13:37

I was shocked when we got this for our only client with them, this is a client that contributes about 6k a month, seems a bit cheeky to now start charging them £15 for the privilege.

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By GHarr497688
25th Oct 2021 13:45

I think it’s disgusting , unfair and a complete con . Like any IT they get you signed up then change the goal posts and con you . The ones to target are government as they introduced AE . Why did they not just increase NI . MTD is the next con with more to follow .

Thanks (2)
Replying to GHarr497688:
paddle steamer
By DJKL
25th Oct 2021 14:05

Personally I think AE is a good thing badly implemented, contributions ought imho to have been from zero earnings up to top threshold, it certainly failed to target low earners with multiple employments.

Re costs, so be it, trouble is we all have spent years not "on paper" paying for things (banking etc) ,catch is there is always a cost even if we have not spotted it.

The catch with inadequate pensions is everyone else pays for that through the tax etc they pay to cover benefits, I resent that.

Modern employers are often ***** and as they would not voluntarily pay something re pensions for their workforce , which was apparently the case, then they had to be forced- tough, I object to subsidising employers via my taxes, I pay the prices they sell me things for, why should I also pay 20 years later because their ex employee cannot afford to heat their house?

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By ireallyshouldknowthisbut
25th Oct 2021 14:40

"any suggestions"

NEST

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Replying to ireallyshouldknowthisbut:
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By Paul Crowley
25th Oct 2021 15:42

+1

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By paul.benny
25th Oct 2021 14:53

buttercup books wrote:
Is it fair that Smart Pensions charges £15 plus VAT / month without consultation?

Without consultation? They're giving notice, which is reasonable. Should they consult? Do you consult all your clients before increasing your fees?

Is it fair? Your clients have been receiving a service for years with no charge. How do you think these guys fund their business?

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Replying to paul.benny:
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By Hugo Fair
25th Oct 2021 15:46

And "if you're only paying £40 per month into a pension" then you're frankly likely to be wasting your money ... given the 'trap' whereby the end result serves merely to reduce the pensioner's entitlement to state benefits.

Thanks (4)
Replying to Hugo Fair:
paddle steamer
By DJKL
25th Oct 2021 15:56

Will it by the time they reach pension age, that is the question? From what I gather we are all going to get the same (providing we have the years)

This seems to have worked out fine for me, likely full new state pension if I do another couple of years to catch up my contracted out years reduction and I get to also have the other pension/income from my contracted out contributions.

Thanks (1)
Replying to DJKL:
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By paul.benny
25th Oct 2021 16:52

For those without a full state pension AND no other income/assets, Pension Credit effectively tops up their state pension to the full amount. I don't know the taper (ie rate at which benefits are withdrawn) for old age benefits; for working age people, the taper on UC is >60%.

As Hugo says, the benefit of such a small pension contribution may be negligible.

Thanks (2)
Replying to Hugo Fair:
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By GHarr497688
25th Oct 2021 19:43

I thought I was unique in this view . That’s good to hear .

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Replying to GHarr497688:
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By Hugo Fair
25th Oct 2021 20:44

Certainly not unique ... it was first pointed out to me (in a meeting at Caxton House when planning for AE) by a senior DWP policy guy - accompanied by the caveat that "it's probably obvious but for g**'s sake don't publicise it before we've got AE up and running properly"!

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Replying to paul.benny:
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By Leywood
25th Oct 2021 16:47

Not only did they give notice, but it was mentioned on here easily more than a week ago.

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By katrinakilcoyne
23rd Nov 2021 17:42

"Is it fair? Your clients have been receiving a service for years with no charge. How do you think these guys fund their business?"

Not exactly! The pension fund take a % of the contributions and I would think that this is substantial given the amount of employers which have signed their employees up to this scheme. Why on earth would Smart Pension run this pension with out any gain. They are just being greedy in my eyes. Someone at the top wants a huge pay rise, I doubt these fees will go towards pay rises for the actual workers of the scheme!

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