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For my small business, I want a pension product with low fees and good returns on a 15-20 year basis.

13 January 2022

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Question by Alice

I run a small business, and want to move my first two employees onto PAYE.

As part of this, the employees and myself must pay directly into a pension product.

The employees are in their mid /late 30s and their pay is already small - so I want to find a pension product that has low fees, but offers good returns on a 15-20 year basis.

My ideal scenario would be to find a product that would enable the individual to add more to it in the future too if they got lump sums etc or wanted to increase their contributions.

I am looking to open the products within the next month.


Answered by Joshua Gerstler

Hi Alice,

Boring Money has a guide from a few years ago - https://www2.boringmoney.co.uk/media/1752/guide-to-auto-enrolment-for-employers.pdf

One of the most popular auto enrolment schemes is NEST. This is because they advertised widely at the outset, as well as being a public corporation that reports to Parliament.

It has relatively low fees and your employees can add to it if they want to.

It is too early to say which auto enrolment schemes are going to offer the best returns over a 15-20 year period.

I would suggest that whilst their salaries and contributions are small, start with something simple and low cost.

If their pension pots grow to a substantial size in the future you could then look at something a bit more bespoke with further investment options.

I hope that helps!

Josh