Majority of businesses still left confused by auto-enrolment

More than half (56 per cent) of UK businesses still find auto-enrolment confusing and were unable to say what the term related to.
 
This figure comes from a Sage UKI study, which also revealed that 27 per cent are still unsure what the auto-enrolment changes mean for them and their retirement.
 
A quarter of UK businesses also confirmed they are yet to receive any information on the revisions to workplace pensions; equating to around 300,000 companies that have been left in the dark.
 
When workplace pensions and auto-enrolment were explained to survey respondents, more than 75 per cent agreed with the changes being implemented. However, it’s clear there is an awareness and education gap that must urgently be addressed.
 
Lee Perkins, managing director, start-up and small business division at Sage UKI, said: "The way we save for retirement has transformed in recent years, but the lack of awareness about the change is a major concern.
 
"The fact there is such confusion and ambiguity surrounding the term means the language surrounding workplace pensions needs to be looked at and considered carefully.

"The auto-enrolment crunch time is fast approaching. If you’ve not heard anything and have questions about what it means for you, you need to head to the Government website. This is something that will affect the majority of people in the country and will have implications for your retirement so it is vital you are up-to-speed on the changes."
 
This year, businesses with 60 to 350 employees will reach their staging date and be required to automatically enrol any eligible staff members onto a company pension scheme.
 
Progressively smaller businesses will then be required to provide a workplace pension to their employees in a phased roll-out later next year.

Date published 26 Sep 2014 | Last updated 26 Sep 2014