20th October 2015
Many businesses are leaving it to the very last minute to begin automatically-enrolling their staff into workplace pension schemes, a provider has warned.
Of the companies that signed up with workplace pensions provider NOW: Pensions in the third quarter of 2015, over a third (37%) completed their application either very close to their staging date or after the deadline had passed.
Of these employers, over a quarter (27%) contacted NOW: Pensions within a month before their staging date while 10% left it until after their staging date had passed.
At the other end of the spectrum, 31% of firms signed up six months or more ahead of their staging date. A further 12% signed up with NOW: Pensions between three and six months in advance of their auto enrolment deadline. Just over one in ten (11%) took action between one and two months ahead of their staging date, while 9% took action two to three months ahead of staging.
Morten Nilsson, chief executive of NOW: Pensions, says: “A large proportion of employers are taking the regulator’s advice and planning well ahead for auto enrolment but, a growing number are dragging their feet.
“Owners of smaller firms inevitably wear many hats and auto enrolment can come low on the priority list. But, like it or not, auto enrolment can’t be ignored and leaving it to the last minute inevitably results in more stress and more limited choice of pension providers.”
|Months to staging date||Q1 2015||Q2 2015||Q3 2015|
|6 or more||32%||30%||31%|
|3 – 6||14%||16%||12%|
|Within a month before staging||18%||19%||27%|
|After staging date||8%||13%||10%|