Personal Pension  

Awareness of auto-enrolment among intermediaries high, claims DWP

Awareness of auto-enrolment among intermediaries is high, a report from the department for work and pensions has shown.

The DWP carried out an evaluation of auto-enrolment, which started being rolled out in October 2012, in which it praised the efforts of financial advisers.

The 117-page document, Automatic Enrolment Valuation Report 2014, said: “Levels of awareness remained high among all five intermediary groups interviewed.

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“Awareness was lowest among accountants and bookkeepers, although still at a high level, which is to be expected given their clients are most likely to be furthest away from their staging date.”

It claimed, however, that financial advisers had played a major role in helping people.

Intermediaries were asked a range of questions to determine levels of knowledge relating to more detailed aspects of automatic enrolment with which these groups are likely to deal.

The report said: “Financial advisers continued to display high levels of awareness, especially when compared with other types of business advisers.”

It found there were 4.7m workers enrolled by almost 34,000 employers as at September 2014.

Adviser view

Chris Daems, director of London-based Principal Financial Solutions, said: “The story of auto-enrolment so far has been an overwhelmingly positive one.

“However this is partly due to the size, scope and nature of the employers who have already complied.

“These tend to be large and medium-sized businesses with the resources, staffing and budget to make auto-enrolment work well.

“However, the challenge for government and the regulator, the professionals who work in this sector and employers, is the arguably much larger challenge of helping the hundreds of thousands of small and medium enterprises have as much success over the coming few years.”