Standard Life research: Most employers not prepared for auto-enrolment

The majority (93%) of large employers do not yet have firm plans in place to meet the requirements of auto-enrolment, according to research by Standard Life.

Its Insight into auto-enrolment research, which surveyed 200 large employers, found just 7% had reached a decision on how they will deal with auto-enrolment, 39% had set a date by which a decision will be made, and over half (54%) did not know when they would have their plans in place.

Over half (56%) were undecided about the contribution levels they would be making for new members being auto-enrolled, while 36% confirmed they would pay the same levels, and just 5% indicated they would reduce payment for new members.

In addition, 50% of respondents were not clear about the salary ranges of employees who are currently not in their pension scheme.

Jamie Jenkins, head of corporate strategy and proposition at Standard Life, said: “The research highlights many employers still have some big decisions to make.

“The majority of those surveyed will need to commence auto-enrolment at some point during 2013 and there is a great deal of planning work that needs to be undertaken. Therefore, 2012 is going to be a busy year.

“Spending time now understanding the financial impact of auto-enrolment will help employers identify the difficult decisions that need to be made.

“The sooner employers start the planning process, the easier the financial and administrative transition will be.”

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