Extra service, extra costs
However, advisers who are successful will need to urge clients to realise that some providers will charge extra for additional services and governance. But is this worth the extra costs for the client?
According to Gallacher it can be. He adds: “Generally, I’d say yes. Complying with all the rules can be tricky unless you’ve got a dedicated payroll team looking after your pension scheme. Consequently, any help you can get from the provider, even if you have to pay for it, should be a good idea.”
However, Elkington, disagrees with clients paying more for additional services. He says: “Simply put, no. I think the smallest scheme I’ve arranged was for a 20-person business with Royal London.
"There were no additional provider costs for the employer and they even allowed me to design a bespoke lifestyle strategy constructed of sustainable and ethical funds – which was important for the employer due to the nature of the business.”
However, Ariyawansa takes a more nuanced approach. He says: “Advisers are able to decide whether it makes sense for the employer to pay for additional services schemes may offer.
"This is not so important for the most simple of arrangements, yet can be invaluable for high-growth companies with employees on larger wages or benefits.”
There is no doubt that value for money is a key consideration for IFA clients looking to set up a work place pension.
Although using an adviser can add to the overall cost of a pension, PensionBee chief executive officer Romi Savova argues that it can be worth it. She says: “Value for money should be assessed according to the framework laid out by the regulators, including performance, costs and service levels.
"While an advised offering can add to the overall cost of a pension, if it helps a customer achieve their desired outcome in retirement, for example through efficient contribution management or tax optimisation, then it can be worthwhile.
"Similarly, a low-cost product may not perform well owing to insufficient levels of diversification, which should be considered holistically with the customer’s objectives in mind.”
Aamina Zafar is a freelance journalist
