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Advisers not confident providers can handle auto-enrolment demand

More than nine in ten advisers believe pension providers are ‘cherry picking’ auto-enrolment business, new research by Defaqto has found.

The study, which polled 244 advisers, found only 8% believe pension providers have effectively managed demand for auto-enrolment this year. Over two-thirds (68%) claim that only some providers have managed it.

Worryingly, 55% of advisers lack confidence in providers’ ability to handle demand for auto enrolment services next year.

The main issues advisers face, aside from cherry picking, are inefficient provider systems (chosen by 58% of advisers), providers changing acceptance criteria (55%), increasing volumes (49%) and providers withdrawing from the market (49%).

Morten Nilsson, the CEO of provider NOW: Pensions, which commissioned the study, said: “As we go into 2015, the problem of cherry picking will worsen as fewer providers actively participate in auto enrolment. But, we remain committed to accepting all employers regardless of size on equal terms.

“In recent months we have increased the size of our client support team five-fold and average call waiting times for clients and advisers needing help are now less than 30 seconds.”