Around three-quarters (79%) of respondents that already have a workplace pension scheme in place opted to use their existing scheme for auto-enrolment, according to research by the Department for Work and Pensions.
Its Employers’ pension provision survey 2015, which is based on a survey of 3,008 private sector employers, also found that 36% of respondents that are yet to stage and already offer workplace pension provision intend to use their existing scheme.
The research also found:
- Around a third (36%) of employers that did not have an existing workplace pension scheme in place, set up a new stakeholder, occupational or group personal pension or group self-invested personal pension plan for auto-enrolment, and 40% used the National Employment Savings Trust (Nest).
- More than half (53%) of respondents that have not yet staged and that do not have an existing pension scheme in place do not know where they will enrol their employees.
- 83% of staged respondents face higher contribution costs as a result of auto-enrolment.
- Almost half (49%) have, or intend, to absorb these costs or reduce profits, while 12% plan to offset the increased costs by making changes to their pension scheme.
- 95% of respondents yet to stage are aware of auto-enrolment, and 65% are aware of the minimum pension contribution rate.
- More than half (55%) of respondents yet to stage have started to plan for auto-enrolment but have not yet taken any action.
- 6% of respondents have conducted the auto-enrolment process ahead of their staging date.
- 74% of respondents yet to stage expect their pension contribution costs to increase as a result of auto-enrolment.
- 14% of employers yet to stage plan to contribute above the legal minimum contribution rate.