Auto-enrolment forces more budget cuts

Some 14% of delegates at the Employee Benefits Pensions and Workplace Savings Summit said auto-enrolment was causing their organisation to cut back on its pay or benefits budget.

This was a rise of three percentage points on the proportion of delegates that said the same at the 2012 summit.

A further 8% of delegates said they had not yet cut their benefits budget, but were considering doing so. No delegates at the 2012 summit, when this research was last carried out, said the same.

On the second day of the event, held at the Four Seasons, Hampshire on 31 January and 1 February, delegates also revealed how regularly they review their pension schemes’ default investment options. More than one-third (39%) now do so annually, compared with only 18% who said they did so in 2012.

However, fewer delegates said they bring their financial benefits, such as pensions and share schemes, together on a single online portal.

Just over a quarter (26%) of this year’s delegates said they do so, compared with one-third in 2012.