Personal Pension  

Warning over ‘very troubling’ auto-enrolment market

“There’s a vast amount of work to be done to restore some of the confidence, trust and understanding that is sorely lacking in the UK pensions sector.”

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Keith Churchouse, director at Chapters Financial, said: “Many providers have a long-term strategy for profitability in this ever growing pensions arena and although ShareActions’ findings are not a surprise (and possibly a reflection of profitability targets before full anticipated volumes are reached), they are a disappointing reflection at a time when this market is due to grow significantly in 2016.

“With thousands of SME’s reaching their staging dates this year, I hope we will see scores improve dramatically.

“I also think that investment stewardship will become ever more critical to those who are saving for the first time via AE.”

Daren O’Brien, director at Aurora Financial Solutions, said in his experience a lot of insurers’ auto-enrolment platforms are simply a reworking of their old group personal plan platforms and so the poor performance outlined in the report isn’t surprising.

He said: “It’s particularly worrying when the auto-enrolment providers have had so long to get their propositions and platforms in place before launching that they are still selling employees short with a bad user experience.”