Automatic enrolment 2.0 is needed to fix the gaps left by the current reforms, the head of pensions research at Bristol-based Hargreaves Lansdown has said.
Tom McPhail, who is also chairman of the Pension Income Choice Association, said: “A lot of good work has been done on pensions, including auto-enrolment, state pension reform and the Budget freedoms, but they are not enough.”
Looking beyond the next election in 2015, he said the industry should already be thinking about auto-enrolment 2.0 and ways to fix the gaps left by the current reforms, adding: “We believe active engagement has to be a critical element of future pensions policy”.
Ways in which the industry could help people with auto-enrolment included providing telephone helplines with real people providing helpful answers, online tools, smart device apps and short forms with user-friendly layouts.
He also said that, as far as possible, pension providers should look to integrate their customers’ retirement savings with their wider financial arrangements.
Industry view
Mr McPhail’s comments came as the National Employment Savings Trust argued employer demand has created a new breed of automatic enrolment expert.
Tim Jones, chief executive of Nest, said: “Small and micro employers to date have had little experience of workplace pensions, so it is natural that they will want help.
“Only one in four currently offers a scheme. With 45,000 staging in 2015, automatic enrolment experts are very well-placed to help businesses meet their duties.”