FOUR out of five small businesses in the UK will not be ready for the October deadline for stakeholder pensions, according to investment experts Scottish Amicable.
Businesses employing more than five people must offer a stakeholder scheme by October 8 or face substantial fines.
At present more three quarters of small businesses do not provide staff pensions and just one in five will have reviewed the situation by October 8.
A survey of more than 1,000 businesses employing up to 50 people found that almost half of small UK businesses had never heard of the new low-cost schemes now available.
John Glendinning, head of pensions development at Scottish Amicable, said: "The most surprising aspect of this research is the apparent lack of understanding and awareness of stakeholder pensions among small businesses, in particular their responsibilities as employers.
"Many appear to believe they will be exempt."
He said that when deciding on a pension scheme, employers should not only base their decision on cost, but should also consider the long-term value for staff.
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