More needs to be done to educate employers about pensions auto-enrolment, a recent poll has shown.
The survey conducted by NOW pensions found that nine in ten IFAs believe that employers lack the knowledge to make informed decisions about auto-enrolment.
Three quarters of those questioned said the responsibility for educating employers about auto-enrolment should fall partly on the government, and the same amount said it should be partly the responsibility of the Pensions Regulator.
Morten Nilsson CEO of NOW Pensions said:
“Many employers will be approaching auto enrolment with trepidation. The advisory community has an essential role to play, guiding employers through the process and helping to ensure that the schemes they select for their employees are fit for purpose.
“Providers, government and the regulator also need to work together to ensure that only high quality schemes with low charges are permitted into the auto enrolment marketplace. Employers would then be on a firmer footing to tackle auto enrolment with greater confidence.”
Petra Griffiths, IFA at PSG Financial Solutions, said picking the right pension scheme is a big responsibility for employers and therefore they need to be informed of the long term consequences for their employees in order to make the right decision. She warned that otherwise the long term benefits of auto-enrolment could be ‘undermined’.