Auto-enrolment has positive impact on benefits packages

Ritchie-John-Ellipse-2013

Just over two-thirds (67%) of advisers say pensions auto-enrolment has prompted employers to think about their wider benefits offering to employees, according to research by insurer Ellipse.

Its survey of 120 financial advisers also found that 66% agree that, in the long term, auto-enrolment will lead to more interst in employee benefits generally. 

There was no significant concern among this group that benefits spending would drop due to its implementation.

However, its survey also found that many smaller employers, which are yet to reach their staging date, are unprepared for auto-enrolment

John Ritchie (pictured), chief executive officer of Ellipse, said: “We have always felt positive about the impact pensions auto-enrolment would have on the wider benefits market, so it is encouraging to see that our optimism is shared by the majority of advisers.

“While complying with the rules around auto-enrolment presents obvious challenges to [organisations], it is prompting them to reflect on the wider benefits they offer, or could offer, to their employees.”