According to a new survey by The Pensions Regulator, one-third of all businesses are choosing to use the services of outside advisers to deal with their ongoing auto enrolment duties rather than deal with it in-house. In a survey that questioned over 800 businesses, the overall picture is bright, with most employers thinking of auto enrolment as "business as usual" and as something that is easier than anticipated.
The survey asked a broad range of businesses (300 micro employers, 301 small and 200 medium) and also found that the majority of employers were in support of the increase in minimum contributions. Furthermore, it found that a third of employers were already paying above the minimum despite it not being a legal requirement.
Other findings from the survey included:
- Most employers were aware that pension contributions will increase in April 2018 (84% of micro, 94% of small and 94% of medium employers).
- Letters from The Pensions Regulator were the most common way they found out about the increase in contributions.
- The majority of employers found ongoing duties easier than they anticipated and were confident they could comply.
- Two-thirds of medium employers and half of small employers were asked by their staff for more information about how their pensions worked and their contributions.
- More than three-quarters of employers said they did not incur any costs in meeting their ongoing duties.
Darren Ryder, TPR's Director of Automatic Enrolment was upbeat and said: "Automatic enrolment is a fantastic opportunity for staff to start saving for the future and our report highlights that employers are playing their part in making it a success."
"We have worked hard to make automatic enrolment as straightforward as possible so it's great to hear that employers can complete their ongoing duties quickly and easily."
"It is also very encouraging to note that most employers accept that paying more in contributions will build on the success of automatic enrolment. Increasing contributions is an important part of boosting retirement outcomes and we want to make sure we build on the momentum already achieved."
"To help employers with their communications to staff about the increases, TPR has published an online letter template setting out what staff should know."
"We want staff to get to know their pension and appreciate the benefits of workplace saving. Anyone who is concerned they are not receiving the correct pension contribution should contact TPR."