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Three-quarters of employers noticing impact of auto-enrolment

Three-quarters (75%) of employers are noticing an administrative impact of auto-enrolment, according to research from Close Brothers Asset Management.

Pension scheme uto-enrolment is gradually being introduced over six years, and began in October 2012. 

Worryingly, only 34% of employers are confident that they have complied fully and have robust systems in place to deal with auto-enrolment. Less than half (46%) believe they are adequately dealing with requirements.

Richard Wilson, policy lead for defined contribution at NAPF, said: “Automatic-enrolment is a great opportunity to get people into the habit of saving for their retirement. But we must not forget that employers are also vital to the whole process, especially because they will be choosing the scheme, implementing the systems and responsible for compliance and communications."

"This can prove a challenge for some employers, especially SMEs, who may not have the in-house resource available to deal with pensions issues, which is why it is important they seek the right support," he added.

Maxine McIntyre, head of corporate proposition at Close Brothers Asset Management, said there is growing concern that businesses need to do more to meet and exceed their employer duty.

“In the long term, auto-enrolment will bring with it more business benefits than complications, once the initial administrative bridge has been crossed,” she added.