Employers and employees must open their eyes to the challenges they face before auto-enrolment is introduced in 2012.
We already know workers find pension investment choices confusing and more often than not make no selection, ending up in a prescribed default fund. Our research shows words such as ‘risk’ and ‘equity’ mean very little to many potential investors. In 2012, the new employer responsibilities will introduce auto-enrolment to qualifying pension schemes in the UK. In principle, this is an admirable effort to help workers save for retirement, but there are some clear challenges. Being auto-enrolled removes any decision-making about whether to join an employer-sponsored pension scheme, or th...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes