Pensions - Articles - Companies are still missing their pension deadline


Aviva’s third auto-enrolment (AE) staging tracker has shown a further increase in the proportion of businesses which set up their workplace pension after their deadline had passed.

 1 in 6 businesses (16%) applied to Aviva for a workplace pension after their staging date had passed – up from 14% in the previous quarter
 A quarter of companies (25%) are making preparations more than two months in advance, but this is the lowest on record

 In Q1 2017, 1 in 6 (16%) companies set up their pension scheme with Aviva after their staging date – the date the Pension Regulator says they should have a scheme in place. That is up from 1 in 7 (14%) during the previous quarter and 16 times higher year-on-year - although the number of companies going through auto-enrolment has greatly increased since the middle of 2016.

 These companies are putting themselves at risk of a fine and are limiting themselves when it comes to choosing a pension scheme as not all providers will take on ‘late stagers’. The table below details the proportion of workplace pension applicants to Aviva who applied during 2016 and Q1 2017 in comparison to their staging month.

 
 
 Drop in advance applications
 The data has also highlighted that the proportion of firms preparing for auto-enrolment well in advance has continued to fall. Only a quarter of firms applied to Aviva more than two months in advance of their staging date – the lowest on record.

 This figure is down considerably on the high of 40% back in Q2 2016. However, the proportion of companies applying a month or two months before their deadline has remained stable.

 A big year for auto-enrolment
 2017 is arguably the biggest year for auto-enrolment since roll-out began in 2012. Around 500,000 companies, largely SMEs (small and medium sized enterprises) are due to go through the process this year.

 The number of firms who are now setting up workplace pensions for the first time does go someway to explaining to continued rise of ‘late stagers’.

 Andy Beswick, MD Business Solutions at Aviva, said: “While some of these numbers are disappointing, it’s not unexpected. SME’s tend to be less well resourced and aren’t blessed with large HR departments or budgets to help them through their auto-enrolment journey.

 “What the figures do highlight is that there is still work to be done to make business owners aware of their obligations. As an industry, we’ve been talking about auto-enrolment since the early 2000s and implementing it for over four years now. But to thousands of employers and employees, it is still a brand new concept and we need to make sure people aren’t getting left behind.

 “We’re working hard to make it as easy as possible for SMEs to get their pension scheme in place even if they are late. Our process is online, and can be completed in 10 minutes. If employers need more support our teams are ready to offer help.”

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.