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Nest warns against complacency over early auto-enrolment success

by Brian Cantwell on Feb 19, 2013 at 09:24

Nest warns against complacency over early auto-enrolment success

The government and pensions industry must not be complacent about the initial success of auto-enrolment, as the challenge of engaging small and medium sized businesses has yet to be met, the National Employment Savings Trust (Nest) has warned.

Auto-enrolment began in October 2012 for companies with 120,000 employees or more. Firms with 50 employees or less will come under the reform from April 2015 onwards.

According to Nest, only 10% of employees have opted out of auto-enrolment since October, half as many as had been expected.

Speaking at the Westminster Employment Forum auto-enrolment conference, Graham Vidler (pictured), Nest director of communications and engagement, said the strong uptake among large businesses had been boosted by their resources and payroll functions. ‘Opt-out rates are very low at 10% which is very encouraging,’ he said.

However, he said the pensions industry must keep products simple to maintain that among smaller firms.

6 comments so far. Why not have your say?

TheFuture

Feb 19, 2013 at 15:21

Isn't the last paragraph damning as that is just what NEST isn't

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John Phillips

Feb 19, 2013 at 15:23

How many Firms with 120,000 employees didn't already have a scheme in place?

How many firms have switched from DB to DC to save them a fortunee?

How many firms now contribute less than they did previously?

I'd like to see more information before accepting the "success" of nest.

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P L H

Feb 19, 2013 at 15:30

Opt outs where only 1% of salary is being collected are low. When that increases to 5%, I'm sure the opt out rate will be as high as expected.

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j p

Feb 19, 2013 at 15:31

the mistake they are moving towards is that they are going to alienate advisers and providers by lifting the caps. they are then left with employers doing it on their own....oh what joy this will be

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John Burchett

Feb 19, 2013 at 15:37

Does this man really believe his own spin?

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Roydo

Feb 19, 2013 at 15:39

Another important point is that the big boys have been keen to attract the large employers; Widows, Standard, L&G, etc have all taken on mandates. Not so sure they will be as keen when the great unwashed need to be catered for......

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