For immediate release: Tuesday 4 February 2014
A staggering 89% of IFAs are concerned that employers lack the knowledge to make informed decisions on the appropriate auto enrolment solution for their employees according to new research conducted by independent financial research company Defaqto on behalf of NOW: Pensions.
Of the 264 advisers questioned, nearly two thirds (65%) think that employers are ‘unengaged’ with auto enrolment.
In addition, just 5% of those surveyed believe that employers are fully aware of their auto enrolment obligations as set out by The Pensions Regulator with 95% stating that more should be done to ensure employers understand the long term implications of their decisions on auto enrolment.
When it came to who should be responsible for educating employers, over three quarters (77%) of advisers who think more should be done say responsibility sits with the government, 75% believe it is down to The Pensions Regulator and 23% think the onus should be on providers.
Petra Griffiths, IFA at PSG Financial Solutions based in Peacehaven, East Sussex said: “Picking the right pension scheme is a big responsibility for employers and the decision they make will have far reaching consequences for their employees. Improving employers’ understanding of the consequences of their decisions is imperative otherwise the long term benefits of auto enrolment could be undermined.”
Simplifying sign up
To help advisers get their clients’ auto enrolment needs sorted out quickly and efficiently, NOW: Pensions has recently launched a new online sign up tool for auto enrolment that requires no lead time.
By logging onto a secure section of the NOW: Pensions website, advisers can fill out an online form on behalf of their client. The form covers all information needed to set up a scheme and takes a matter of minutes.
At the end of the process a participation agreement is produced which the IFA can submit online on behalf of the client without the need for a wet signature.
On receipt of the online documentation, NOW: Pensions provide implementation details to the client within 24 hours.
Morten Nilsson CEO of NOW: Pensions said: “Many employers will be approaching auto enrolment with trepidation. The advisory community has an essential role to play, guiding employers through the process and helping to ensure that the schemes they select for their employees are fit for purpose.”
“Providers, government and the regulator also need to work together to ensure that only high quality schemes with low charges are permitted into the auto enrolment marketplace. Employers would then be on a firmer footing to tackle auto enrolment with greater confidence.”
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For further information:
Tel: 07941 105879
Tel: +44 207 294 3620
Notes for editors:
Research conducted online by Defaqto between 25th November and 5th December2013.
NOW: Pensions www.nowpensions.com
NOW: Pensions is a multi-employer trust. The investments are managed by NOW: Pensions Investments, a subsidiary of ATP in Denmark.
The NOW: Pension Trustee Directors, whose role is to safeguard the interests of members, comprises well-known industry figures with different areas of expertise:
- Nigel Waterson, former Shadow Pensions Minister
- Imelda Walsh, former Group HR Director of Sainsbury’s
- John Monks, member of House of Lords and former General Secretary of ETUC and TUC
- Christopher Daykin, former Government Actuary
- Win Robbins, former Head of European Fixed Income at Barclays Global Investors
NOW: Pensions is committed to developing a better workplace pension provision in the UK by offering a simple, high quality, cost efficient and systematically risk managed pension product that delivers better retirement savings for UK employees. With over 50 years’ experience providing Denmark’s working population with stable and consistent pensions returns, NOW: Pensions is set to transfer the knowledge acquired in Denmark to the UK pension market. Charges are just £1.50 per month administration charge (reduced administration charge of £0.30 – £1.00 to be applied during auto enrolment phasing for lower earners) plus a 0.3% annual product investment management charge, with no hidden charges.
In April 2013, NOW: Pensions became the first master trust to attain the NAPF’s new PQM Ready Standard. The benchmark shows employers that NOW: Pensions is a well governed pension scheme with low charges and good member communications.
Defaqto www.defaqto.com/adviser @DefaqtoAdviser
Defaqto is an independent researcher of financial products, focused on providing intelligence to support better decision-making. At its heart is the UK’s largest retail financial product and fund database which it maintains by collecting data from across the whole market, and uses its expertise and insight to analyse this data and make it comparable.
From this, Defaqto creates a range of products and services – ratings, software solutions, consultancy services, data services, and publications and events – to deliver this information in a meaningful way. Defaqto’s intelligence facilitates better financial decisions and greater effectiveness in the creation, management and distribution of financial products.