32% do not plan to comply with auto-enrolment

EXCLUSIVE: Almost a third (32%) of respondents have no intention of complying with auto-enrolment legislation, according to research by pensions consultancy Secondsight.

The Secondsight Auto-enrolment survey report, which was conducted by its parent company Foster Denovo, questioned 327 respondents which are predominantly small and medium-sized employers (SMEs).

The research also found:

  • 66% of respondents had little or no knowledge of auto-enrolment legislation.
  • 33% of respondents will comply with auto-enrolment without external help.
  • 27% of respondents intend to spend one day or less in management time complying with auto-enrolment.

Matthew Mitten (pictured), equity partner at Secondsight, said: “Our report shows that pensions still don’t feature highly on the business priority list, and this is despite the investment being made in marketing around auto-enrolment.

“We found the ‘willful non-compliance’ statistic the most surprising to come out of the research; the figure is much higher than I would have expected.

“I suspect that a large part of this is down to organisations not currently putting auto-enrolment onto their radar. Also, there is a real lack of awareness around the penalties for non-compliance.

“Employers are grossly underestimating the complexity and length of time required to become auto-enrolment compliant.

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“Resources are already under strain, and I’d advise those organisations now thinking about auto-enrolment to review how they intend to manage the work involved.”

Secondsight will exhibit at Employee Benefits Live on 25 and 26 September at National Hall, Olympia.