The problem of “cherry-picking” will worsen as fewer providers participate in auto-enrolment in 2015, the chief executive of Now:Pensions has warned.
Morten Nilsson said the pension changes in April 2015 will make it hard for providers to target both the AE market and the wave of people who want to know what to do with their pension pots.
He said: “The pensions landscape is fundamentally shifting and any investment strategy that targets annuity rates needs to be urgently addressed.”
A recent survey by Defaqto found that 93 per cent of advisers believe pension providers are cherry-picking auto-enrolment business. Only 8 per cent believe pension providers are effectively managing demand for auto-enrolment services.
| Key Points |
| • 55 per cent concerned over pension providers’ efficiency |
| • 49 per cent believe increasing volumes are causing delays |
| • 47 per cent think there is a lack of communication between payroll and pension providers |
Adviser view
Gary Jefferies, chartered financial planner at Maidstone-based H&D Wealth, said: “Providers are geared up for big groups but can’t accommodate ad-hoc when they don’t know the take-up, especially with any transient or seasonal workers.”
