The stagnation of the economy and in particular the struggling plight of SMEs, has led to calls to postpone the introduction of auto-enrolment, most recently in a Government report by Adrian Beecroft.
But the nine million workers who currently contribute nothing towards an occupational pension – and who have no ancillary benefits – cannot afford any delay. Besides, many employers have already made substantial investments to gear up for auto-enrolment.
Auto-enrolment is a huge opportunity to raise the bar for employee benefits by ensuring that the workplace becomes a universal safety net for all employees, regardless of their income. In the longer-term, after the introduction of pensions, I believe employers will make a virtue of the necessity to contribute and offer broader benefits programmes, including life and disability cover.
In turn, auto-enrolment will be the trigger for closer convergence of group risk with pensions and other workplace benefits. Technology will be the key to giving IFAs the platform they need to be able to offer comprehensive benefits to employers in a hassle-free way.
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