Approximately half a million more small and micro employers will have auto-enrolment duties than previously estimated, according to The Pensions Regulator.
TPR calculated that a total of approximately 1.8m small and micro employers would need to meet their pensions duties over the next three years, rather than the previously estimated 1.3m.
The difference has been attributed to more business start-ups and fewer closures.
According to the calculations, the summer of 2017 will see a peak of approximately 350,000 small and micro employers whose AE duties will come into effect, compared to earlier predictions of a peak of approximately 220,000 in mid-2016.
Charles Counsell, TPR’s executive director of AE, said: “The new analysis we have published demonstrates that significant challenges still lie ahead.
“As a result of more new employers starting up and fewer going out of business, the pensions sector will need to plan for larger numbers reaching the start of their duties.”
The calculations also found that by the end of March 2015, a total of 5.2m eligible job holders should be automatically enrolled.
Adviser view
Marvin Evans, principal of Gloucestershire-based Old Bank Wealth Management, said: “Some of these firms may struggle with AE, but this will be a problem for the firms more than for IFAs or the government.”
