SMEs back AE but underestimate costs

Nearly fourth fifths of small employers think auto-enrolment is a good thing, with 19 per cent mildly opposed and only 3 per cent believing it is bad for private sector business, according to research from Creative Benefit Solutions.

The survey, which polled 59 employers, showed a low level of understanding of the cost of auto-enrolment amongst smaller employers, with 44 per cent predicting it would cause just a small increase in overall pension and administration costs and 17 per cent believing costs would remain about the same.
Asked how they thought employees perceive the pension provided for them, 46 per cent of employers appreciated them but felt the way they valued them could be improved, while 19 per cent believed they did not value them.
Asked who should pay for financial advice in relation to company pensions, 25 per cent said the government, 24 per cent the employer and 8 per cent employees, with 41 per cent saying the cost should be borne by all three.
A massive 83 per cent of employers polled had not heard of the Retail Distribution Review.
David Marlow, development manager at Creative Benefits says: “This research shows we are not yet at a stage where employers understand the full costs of auto-enrolment.”