PensionsNov 16 2015

Arm bosses to beat staff savings inertia

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Advisers should help employers do more to help overcome “savings inertia” and get more employees engaged with their workplace pension.

According to Aegon UK, 95 per cent of employers feel it is their responsibility to help employees engage with their workplace pension, but without proper time, training or knowledge, they cannot provide what they need.

Angela Seymour-Jackson, managing director of workplace solutions at Aegon UK, said that better involvement with advisers and providers could help employers make the most of auto-enrolment to get more staff saving for a pension and thinking about their options.

She said: “As the programme is rolled out to the UK’s 4.9m businesses with fewer than 50 employees, it is vital that employers are properly armed to overcome the saving inertia associated with auto-enrolment.”

In particular, technology solutions could help provide some of the answer, she added.

Adviser view

Pensions advisory firm LEBC Group has announced a partnership with Sanctum Software to help employers conduct a complete audit of their auto-enrolment pension duties, and enable them to resolve any past and future issues.

Glynn Jones, director of group savings and investments at LEBC said: “In looking to improve an employer’s scheme, it is clear that the AE compliance must not be disturbed. It will also be an appropriate time to review compliance to date. There would be no benefit in moving provider if a problem were merely dragged along or left to fester.

“The most effective course of action is to check whether all employer duties are correct, which will give our clients and prospective clients peace of mind when looking to review and improve the pension arrangements for their workforce.”