Over one-third (36%) of respondents plan to continue using their existing pension scheme to comply with auto-enrolment obligations, according to research by JLT.
The JLT 250 club research is based on the views of 250 employers with workforces ranging from 500 to over 3,000 employees.
It also found:
- 31% of employers do not know how they will comply with auto-enrolment obligations.
- 23% see a role for the national employment savings trust (Nest) alongside their current scheme.
- 4% expect to use Nest for all employees.
Duncan Howorth, chief executive officer at JLT Benefit Solutions, said: “We recommend that employers start planning for auto-enrolment at least 18 months before their staging date, so given that all 250 club members are large employers, such a high proportion of ‘don’t knows’ is a cause for concern.
“What is clear is that Nest, as a potential solution, will not be a yes/no issue but a matter of degrees of usage based on each organisation’s own situation and current pension arrangements.
“It is our hope that the introduction of Nest will help both employers and employees get the maximum value from their workplace pension schemes by highlighting key issues and supporting better understanding.”
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