Auto-Enrolment Switching Enquiries Jump 80%

LONDON, England, Oct. 12 -- Aviva, a provider of insurance, savings and investment products, issued the following news release:

New figures from Aviva show that a growing number of businesses are considering changing their workplace pension provider.

Data from the insurer has shown an 80% year-on-year1 increase in enquiries from small and medium sized businesses (SMEs) or their advisers about moving to a new auto-enrolment (AE) workplace pension provider.

Aviva's figures have also shown the vast majority of switching enquiries are still coming via advisers. However, during the last 12 months there has been an increase in the number of businesses making enquiries themselves.

The Secondary AE Market

The 'primary market' for auto enrolment started in 2012 when AE was first introduced and adopted by large businesses.

Over the course of the next six years, businesses of all sizes were given staging dates - the date by which they needed to have a workplace pension on offer to their employees.

That process ended in early 2018 as all existing businesses had been through the process. Now, any new company setting up has up to six weeks from when they take on their first employee to get their AE scheme in place.

Many SMEs have now had their schemes for a number of years, providing them with time to assess if it is delivering what they require. This has led to a 'secondary market' where businesses are looking to potentially change their AE pension provider. This secondary market is being fuelled by those companies and their advisers who are now looking around to see what else is available.

Malcolm Goodwin, Head of Workplace Savings & Retirement at Aviva, said:

"When AE was first introduced some businesses will have viewed it as a hassle - something to just get done and out of the way. But since then, some of those businesses will have seen major expansion or may have changed their view on the importance of workplace benefits.

"Whatever the reason, we are seeing a major increase in the number of enquiries from businesses and their advisers who are realising they have the freedom to switch if they aren't happy with their current provider.

"So far we have seen enquiries rise by 80% during the last 12 months. We expect that figure to continue to grow."

112 months to September 2018