Two-thirds (65%) of respondents believe employers are disengaged with auto-enrolment, according to research conducted by financial research organisation Defaqto on behalf by Now: Pensions.
The research, which surveyed 264 independent financial advisers, found that 89% of respondents are concerned that employers lack the knowledge to make informed decisions about the appropriate auto-enrolment product for their employees.
It also found that 95% of respondents think more should be done to ensure employers understand the long-term implications of their auto-enrolment decisions.
More than three-quarters (77%) of respondents believe the government should be doing more to educate employers, while 75% believe it is down to The Pensions Regulator and 23% think the onus should be on providers.
Morten Nilsson, chief executive officer 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 Pensions 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.”
What hope is there?!
We battle day-in day-out to engage employees with the importance of saving for retirement and the need to embrace auto-enrolment as an opportunity to help people develop a sustainable savings plan.
But if those rolling out AE to their staff don’t understand or believe in the process then what hope is there?!….
We know the huge influence that management has on general levels of employee engagement so if they’re not tuned into the concept then maybe the industry (or the Government) need to think about applying specialist communication techniques to Directors and senior staff; train the trainer style?
And quickly or this important opportunity (and the whole point of the exercise!) will be lost!