Pensions - Articles - Auto-enrolment to boost corporate platform market


 The introduction of pensions auto-enrolment will lead to huge growth in the corporate platform market, says Deloitte, the business advisory firm.

 Employers must start automatically enrolling all eligible employees into pension schemes over five years from October 2012. The largest employers will be first to introduce auto-enrolment and up to 8m new people will start saving into a workplace pension, depending on employee opt-out rates.

 In its insurance market update, Deloitte says corporate platforms will become increasingly important as employers search for a cost-efficient way to manage employees’ benefit packages.

 Caroline Gardner, director at Deloitte’s financial services practice, said:

 “The corporate platforms market is still in the early stages of development. There are only seven corporate platform providers compared to 27 retail platform companies but the market is set for huge growth. Auto-enrolment will be the biggest change to the UK pension market for years; for the first time millions of people will be saving into a workplace pension.

 “This is a tremendous opportunity for corporate platform providers because they will be able to provide a solution for employers looking to manage employees’ benefits packages in a cost efficient way.

 “The first retail platforms were introduced in the UK in 2000 and assets under management grew at an annual growth rate of 16% between 2003 and 2011, and about 85% of financial advisers now use retail investment platforms. The corporate market could experience similar growth. It’s estimated that there are £100m on corporate platforms and that this figure could double or treble over the next six months.”

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.