Automatic enrolment is the biggest issue facing employers, but nine out of ten of them think it is a good thing for their employees.
The figures come from research carried out at an event hosted by Jelf Employee Benefits attended by pensions minister Steve Webb last month.
Asked which single issue would create the greatest challenges for their company, 42 per cent of employer delegates polled said automatic enrolment, with 28 per cent choosing the abolition of the default retirement age, 21 per cent concerned about a potential merger of tax and NI and 7 per cent worried about the Retail Distribution Review. Only 1 per cent cited Nest as a primary concern.
The survey also found 92 per cent thought automatic enrolment was a good thing for employees, with just 49 per cent saying it was also good for employers, compared to 35 per cent that did not.
Asked whether they felt their voice was being heard in the pension reform process, 52 per cent said yes, compared to 48 per cent who said no.
Minister for pensions, Steve Webb, says: “We want to reinvigorate private pensions, and automatic enrolment will help millions of people to save, many for the first time.I am pleased that many employers agree with us that this is a positive thing for their staff.”
Steve Herbert, head of benefits strategy for Jelf Employee Benefits says: “Employers need help in understanding the pensions changes and the implications for them. Although most told us they feel confident that they’ll be ready when the time comes, we know they will need help in getting there. We’re seeing employers trying to get things in place now, and they see how much there is to do, we urge employers to start getting prepared earlier rather than later.”