Personal Pension  

‘AE expansion means more work for IFAs’

Speaking ahead of the association’s investment conference in Edinburgh, Joanne Segars said many advisers are already being called on to help firms with 50-249 employees, whose staging dates are set for April.

She said AE had resulted in a “phenomenal” turnaround in the number of people saving for retirement, with two million more saving through a pension plan since October 2012 and another two million expected to start between now and July.

Ms Segars said that by starting with large firms and achieving a far lower level of opt-outs Ω 10 per cent – than the 30 per cent originally predicted, the tone of the debate had been set.

Article continues after advert

The NAPF has also welcomed the delay in plans to impose a 0.75 per cent cap on pension fund annual charges. Ms Segars said it was neither sensible nor credible to introduce the cap, especially when employers are in the middle of auto-enrolment.

Adviser view

Speaking as the auto-enrolment deadlines for smaller employers draws near, Petra Griffiths, IFA for East Sussex-based PSG Financial Solutions, said: “Improving employers’ understanding of the consequences of their decisions is imperative, otherwise the long-term benefits of auto-enrolment could be undermined.”