Over one in five firms missing their auto enrolment deadline

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Of the companies that signed up with workplace pensions provider NOW: Pensions in the fourth quarter of 2016, 41% signed up either very close to their staging date, or after their staging date deadline had passed – the highest number recorded over the year.

At the other end of the spectrum however, in Q3 and Q4 respectively, over a third (38%) were planning a clear 6 months or more ahead of their staging date; a stark increase from Q1 where just over one in ten (13%) were sorting their auto enrolment duties in advance.

Of the employers who left it late, 19% contacted NOW: Pensions within a month of their staging date whilst over one in five (22%) left it until after their staging date had passed.

Months to staging date Q1 2016 Q2 2016 Q3 2016 Q4 2016
6 or more 13% 34% 38% 38%
3 – 6 36% 11% 9% 10%
2 – 3 6% 5% 5% 4%
1 – 2 9% 10% 10% 8%
Within a month before staging 21% 19% 19% 19%
After staging date 16% 21% 18% 22%


*
Percentages subject to rounding

Morten Nilsson, CEO of NOW: Pensions said: “It’s encouraging to see that so many small firms are taking their auto enrolment duties seriously and planning well in advance. The messages from The Pensions Regulator are clearly getting through. But, at the other end of the spectrum, a lot of firms are still burying their heads in the sand.

Small business owners have a lot to think about and it’s easy for auto enrolment to be put on the back burner, but the fines for non-compliance are steep and missing the deadline can cause unnecessary sleepless nights.

Auto enrolment is complicated so the longer firms leave to tackle it, the more confident and comfortable they’ll feel.”

For guidance on what to do if you’ve missed your staging date click here.

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Cheriton Lee

NOW: Pensions

T: 0203 826 1464

M: 07557 109 838

cheriton.lee@nowpensions.com

NOW: Pensions www.nowpensions.com @nowpensions

Notes to editors

NOW: Pensions is one of the UK’s largest workplace pension providers with over a million members and tens of thousands of employers from a wide range of sectors. A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, NOW: Pensions entered the UK market in 2011 with a simple and cost effective workplace pension designed specifically with the auto enrolment market in mind.

NOW: Pensions was one of the first providers to achieve independent assurance of scheme quality in accordance with the master trust assurance framework (AAF02/07) introduced by The Pensions Regulator in conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW).

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I firmly believe in NOW: Pensions' principle that everyone deserves the right to a better retirement. I look forward to being part of the team which aims to achieve this in the UK. — Win Robbins, former Head of European Fixed Income Barclays Global Investors
ATP comes to the UK pensions world with the highest commendations from the Danish trade unions, employers and government. NOW: Pensions' offering in the UK will be high quality, low cost, and honest and I'm proud to be associated with it. — John Monks, member of House of Lords and former General Secretary of ETUC and TUC
I've known ATP for many years and have enormous respect for the effectiveness of their investment strategy. I'm convinced that NOW: Pensions can become a major player in the UK and look forward to being a part of that success. — Chris Daykin, the former Government Actuary
I'm excited by the opportunity to help bring to the UK auto-enrolment market NOW: Pensions, a customer-friendly and responsive trust-based alternative to NEST and to contract-based offerings. — Chris Daykin, the former Government Actuary
There is a need for a member-centric solution designed for ease of use with low costs and cutting edge investment strategy, which delivers long term stable returns. ATP's in-house investment capabilities, combined with our novel and innovative… — Lars Rohde, Governor of the National Bank of Denmark and Former CEO of ATP Group