Auto Enrolment Pension Scheme Uncertainty Remains as 6.1 Million still ‘Confused’
As auto-enrolment comes into effect for mid-sized firms, 56% of employees are still unclear of what it means
More than half of the nation’s employees find the term auto-enrolment confusing and do not know what it relates to.
The survey of more than 1,000 full-time employees, conducted by Sage, also found that 27% do not know what the pensions reform means for them and their retirement and 25% have not received any information from their employer.
The auto-enrolment scheme, which started the process of rolling out two years ago, means all UK employers that meet a certain criteria must enrol their staff in a workplace pension scheme once their staging date begins. This will affect 1.3 million small and mid-sized businesses, which have a later starting date than large organisations.
Business owners must begin to educate staff on what the pension will mean to them and their business as from October 1st, firms with between 60 and 350 staff members will reach their staging date. Smaller businesses will then be required to offer a workplace pension to their employees in a phased roll-out after.
Managing director at Sage, Lee Perkins, discussed the findings:
“The way we save for retirement has transformed in recent years, but the lack of awareness about the change is a major concern. The fact that there is such confusion and ambiguity surrounding the term auto-enrolment means the language surrounding workplace pensions needs to be looked at and considered carefully.
The auto-enrolment crunch time is fast approaching. If you’ve not heard anything and have questions about what it means for you, either ask your boss or head to the government website. This is something that will affect the majority of people in the country and will have implications for your retirement so it is vital you are up-to-speed on the changes.”