Small businesses could potentially be facing “huge problems” in the near future as the number of companies needed to introduce auto-enrolment will far exceed the support available from product providers and advisers according to AWD Chase de Vere corporate advice manager Jon Dixon.

Dixon stated that at this moment in time, product providers can support around 2,100 new pension schemes each month but warned that this figure will be breached in May when auto-enrolment “will require 80 times this capacity” for a continuous period.

He added: “This is a recipe for disaster. The availability of independence financial advice will also be squeezed and unsupported employers will find it incredibly difficult to select the provider best suited for their needs from those left standing.

“Nest, with its public service obligation, might become the only realistic choice for many employers, but with no hands on support to its users this could prove a very challenging way for companies, particularly SMEs which have limited internal HR resource to achieve even basic compliance with their new duties."

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