ABI: success of auto-enrolment depends on simplified advice

The Association of British Insurers (ABI) has claimed that simplified advice offerings are the key to the success of auto-enrolment, and has urged the government to back its proposals for members to offer it.

The ABI has warned the government not to delay auto-enrolment into workplace pensions beyond October 2012 in its report, Reinvigorating Savings; ABI plan for Action.

’Offering of simplified advice has the potential to make auto-enrolment a success by helping people take the right decision about pension saving for their circumstances,' the report reads.

'The ABI calls on the Government to support its proposals for simplified advice services to be offered by its members,' it adds.

‘The ABI’s members stand ready to support the government in devising a compliance regime for employers, support the government’s communications campaign, and to deliver simplified advice services for consumers.’

The ABI  added that it would discuss with government the implications of removing compulsory annuitisation at age 75 and will work the team tasked with reviewing the National Employment Savings Trust (Nest) over the summer.

ABI director of life and savings Maggie Craig (pictured) said that the impact of the recession meant that now was a good time for the government to encourage saving.

“We now have a golden opportunity; many people have become debt adverse following the financial crisis and have begun paying down debt,' she said.