Research conducted by Defaqto for Now: Pensions shows close to one in five advisers will not advise the smallest companies on their auto-enrolment obligations, with more than half saying micro and small firms will not represent profitable business.
Three out of 10 (28 per cent) of 244 advisers polled believe there is too much administration involved, and 25 per cent are deterred by how much time it will take.
One in 10 advisers polled do not believe they have the right knowledge to advise on it and two in three say that from their experience so far, employers are either not that engaged or not engaged at all with auto-enrolment, while the same can be said for 83 per cent of employees.
The survey did show a general appetite to be involved in the auto-enrolment space, with nine out of 10 - 88 per cent - of advisers who are currently advising small and medium-sized companies on auto-enrolment planning to continue doing so in 2015.
Three-quarters see auto-enrolment as a chance to both advise existing clients as well as grow a new client base. Half of the advisers surveyed in August this year - 51 per cent - think that auto-enrolment represents a good opportunity for them to grow their business over the long term.
About 68 per cent expect to be providing employers with advice on selecting a pension provider, while 72 per cent expect to be advising them for the staging date and 78 per cent expect their services to be required on an ongoing basis after the staging date has passed.
Elsewhere, seven out of 10 - 73 per cent - believe they will need to advise on other corporate issues such as business protection insurance.
Neil Liversidge, managing director of West Riding Personal Finance Solutions, said: “The need for help and advice around auto enrolment naturally brings together business owners, their employees, and advisers.
“As such it probably represents the single greatest opportunity most firms will have to generate new clients this decade.”
Morten Nilsson, chief executive officer of Now: Pensions, said: “A large portion of employers are still burying their heads in the sand about auto enrolment.
“Advisers have a vital role in supporting smaller employers through the auto enrolment process and with so many employers staging, there is a huge opportunity for them to expand their client base and grow their business.”
ruth.gillbe@ft.com
