According to LCP's latest Executive Pensions Survey, the cuts in pensions tax relief over recent years have resulted in fewer FTSE250 executives relying solely on defined contribution provision.
Looking at the size of the AE challenge, as many thousands of employers stage over the next couple of years, one survey shows this week that many businesses simply don't understand AE requirements. 24% have heard hardly anything about AE and 25% said they'd had minimal communication from the government. This is not encouraging in terms of a successful outcome for their employees.
Another piece of research this week (from Hymans Robertson) shows that DC savers intending to manage their own pension pot in retirement are not willing to pay for regular advice.
The pensions minister has told financial advisers that the guidance guarantee will push up demand for independent advice.
Wordshop has just completed a survey for a client who wanted to gauge whether their member comms are hitting the mark. One of the questions asked members whether they would like to receive their annual newsletter in electronic format… only 12% of respondents said they would!
Congratulations to our client, Wolseley UK, who won two categories in the 2014 Pension Scheme of the Year Awards: best DC communications strategy and best AE strategy.
We were interested to read about a Capita survey that says more than half of people feel pensions jargon has stopped them planning properly for retirement.
Industry commentators believe that George Osborne has pulled the rug out from under the feet of pension liberation firms, by giving DC savers unrestricted access to their pension pots.
DWP has now suggested that the opt-out rate for auto enrolment will be around 15%, which means that some nine million people will begin pension saving or increase their contributions as a result of AE.
The shock liberalisation of our pension system revealed in the Budget has won widespread praise but also raised some serious fears. Will it fuel a housing bubble and line the pockets of cruise ship operators and car dealers, or can people be trusted to make 'sensible' provision for their retirement years?