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Auto-enrolmentLatest NewsPay & benefitsPensions

Start planning for auto-enrolment now, experts warn

by Daniel Thomas 28 Oct 2010
by Daniel Thomas 28 Oct 2010

Employers need to take action now to understand how Government proposals on pension auto-enrolment will affect their HR processes, Deloitte has warned.

The call came after the professional services firm’s survey of 43 major employers – with a combined headcount of more than 300,000 – revealed that 37% have not started to consider the impact of auto-enrolment on their future pension strategy. A further 42% have not factored the expected cost of auto-enrolment pension reforms into their financial plans.

Tony Clare, head of Deloitte’s pensions advisory services practice, said: “The Department for Work and Pensions (DWP) review brings greater clarity for employers, particularly on who must be auto-enrolled and the expected costs.

“For larger employers which will have to commence auto-enrolment in less than two years, it is important that these employers take action now to identify how they will be affected and to understand how their current HR processes and benefit arrangements will be impacted.”

Clare described auto-enrolment into workplace pension saving as “a bold step”.

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“It grapples with the challenges presented by a rapidly ageing population and seeks to ensure that future generations are provided for in a manageable and cost-effective way,” he said.

“The findings of the DWP review balance the need for employers to have flexibility with the need to encourage more people to save towards their retirement. ”

Daniel Thomas

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