Towergate Links with HSBC to Target UK SME Pension Market

24 February 2011 (PLANSPONSOREurope.com) – Towergate Financial has launched a workplace pension proposition with HSBC to help advisers engage with small to medium-sized business (SMEs) in the run up to auto-enrolment, according to Citywire. 

In partnership with HSBC, national IFA Towergate has launched Workplace Pension in a Box aimed at SMEs and their advisers. 

David Taylor, Managing Director of Towergate, told the newswire: ‘We know that small firms do not feel confident in choosing a pension scheme because of its complicated nature and costs. So we have developed with HSBC a simple and cost-effective solution, which will enable SMEs to be ahead of the new legislative changes which will also help with their budgetary planning.’ 

Towergate said the proposition will help firms with fewer than 20 employees work with their corporate advisers to plan and budget for auto-enrolment. Businesses with fewer than 50 employees will not need to enrol until August 2014. However, The National Employment Savings Trust (Nest) will open to voluntary membership this year.  

HSBC is planning to rival Nest by giving corporate IFAs access to a pension platform through which to service SMEs. It follows the launch of a similar employee benefit platform service for IFAs by Paradigm Pensions. 

In November HSBC launched its workplace retirement service, which includes a group pension, employee benefits wrap and fund platform. While HSBC will not take on pension pots as small as Nest it will make a similar offering through target date funds with a protected upside. 

Katherine Blackler
editors@plansponsoreurope.com