Auto-enrolment increases pensions duty of care for 68%

pensions_430 More than two thirds (68%) of respondents feel a greater duty of care to support employees with their workplace pension following the introduction of auto-enrolment, according to research by Aegon UK.

Its survey of 508 UK employers also found that 95% of respondents encounter difficulties that prevent them from delivering this support.

The research also found:

  • More than a quarter (27%) of respondents name time as the biggest barrier to supporting staff with their workplace pension, and 23% cite the costs associated with monitoring and training.
  • Almost all (95%) of respondents feel a responsibility towards helping staff engage with the workplace pension.
  • 21% of respondents do not view workplace pensions as a priority business objective.
  • More than a third (39%) believe that interactive digital tools would be the most effective way of increasing engagement with workplace pensions.
  • 22% of respondents would like more onsite training from financial advisers, 17% from workplace consultants and 15% from their pension provider.

Angela Seymour-Jackson, managing director of workplace solutions at Aegon UK, said: “Now in our third year of auto-enrolment, it’s reassuring to see nearly all businesses taking their role to offer proper employee support alongside a workplace pension seriously.

“However, it’s clear that not all are in a place to dedicate the time and resources needed to get their workforce ready for retirement.

“As the programme is rolled-out to the UK’s 4.9 million businesses with under 50 employees, it’s vital that employers are properly armed to overcome the saving inertia associated with auto-enrolment.”