More than a third (37%) of respondents have seen, or will see, costs rising in relation to pension auto-re-enrolment, according to this year’s research.
The rise in costs was cited by respondents, and the Employee Benefits/Nest research 2017, which also found that almost one-third (27%) of respondents have used this as an opportunity to introduce wider communications around pensions and pension savings. Meanwhile, almost a quarter (24%), have brought in additional systems to comply with regulations.
This year saw a large number of employers in the UK going through auto-re-enrolment for the first time, which prompted more than a third (39%) of respondents using the regulation as an opportunity to change their default fund, as well as 33% of respondents seeking to review or change their existing pension provider, and just under one third (31%) to review or change their pension strategy.
How pensions auto-re-enrolment is impacting respondents’ organisations
Sample: All respondents (161)
It has or will increase costs 37%
They have introduced, or will introduce ,wider communications around pensions and pension saving 27%
They are using it as an opportunity to review or change their existing pensions provision 27%
They have brought in, or will bring in ,additional systems to enable us to comply with requirements 24%
They have introduced or will introduce financial education 22%
They are appointed, or are planning to appoint, an additional provider to enable them to comply with requirements 9%
They have appointed, or are planning to appoint, an additional adviser to enable them to comply with requirements 8%
It has prompted them to introduce an at-retirement strategy to complement their pension scheme efforts 5%
They have not yet auto-re-enrolled their staff 4%
Other 11%
How respondents are using auto-re-enrolment as an opportunity to review or change their existing pension provisions.
Sample All respondents that are using auto-re-enrolment as an opportunity to review or change their existing pension provisions (39)
To review or change their default fund 39%
To review or change their pension provider 33%
To review or change their pension communications strategy 31%
To review or change their investment options 23%
To review or change their pension advisor 10%
Other 23%