David Nish, Standard Life's Group CEO, will this morning outline the important role small and medium- sized businesses (SMEs) will play in the success of auto enrolment at the LibDem conference in Glasgow.
Speaking ahead of the event David Nish said:
"With an industry opt out average of around 10% compared to the predicted 20% to 30% we have seen a really encouraging start to the roll out of auto enrolment. Though we must acknowledge it is still early days.
"The initial success has primarily been down to the way in which employers, advisers and providers have worked together to communicate the messages around the benefits of workplace pensions to employees. We are now entering a period where small and medium-sized companies will be implementing auto enrolment into their businesses. This will be a crucial period.
"SMEs are central to the UK economy, accounting for 99% of UK businesses and employing over 14 million people. Many lack the resources of larger businesses so it is vital that they get the necessary support to help make auto enrolment a success for their employees and Standard Life is leading the way in this area.
"We manage over 35,000 workplace pension schemes, with 1.3 million members, and the vast majority of the clients we look after are SME businesses. We have therefore improved our systems to deal with the increased capacity auto enrolment will bring and developed straight forward propositions, tools and communications support. This has been a vital focus for us to give SMEs, and their advisers, the helping hand they need to meet their regulatory responsibilities while also ensuring they are delivering quality workplace pensions for their employees.
"We have consistently championed the opportunity auto enrolment presents the UK in helping to rebuild a culture of savings and this continues to be a key priority for us. Addressing Britain's savings challenge requires a sustained partnership between government, the industry, employers and employees, and that is why I am speaking at the Glasgow Chamber of Commerce event alongside the Pensions Minister to an audience of local businesses."
Also speaking at the event will be Glasgow Chamber of Commerce chief executive Stuart Patrick who added:
"Pensions are a major issue for the UK, and people have to save more for their retirement. Auto enrolment is a step towards making sure this happens, but it puts a requirement on to employers to have a pension scheme in place and to enrol workers into the scheme. It's important that employers understand the implications, and this event is an opportunity to get to grips with it via two of the most senior people in the field."
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