Corporate wraps giving 'blue collar' workers access to self-invested personal pension (SIPP) products will never break through traditional barriers like employee engagement, according to LV=.
Head of pensions and investments Ray Chinn (pictured) said while corporate wraps - many of which offer access to SIPPs - are a good way to get information out to the workforce it was unlikely the majority of workers would actively opt for SIPP-type retirement saving.
He said the distinction between executives who use a group SIPP set up and the rest of the workforce would remain. Chinn added this segmentation of pension provision would continue post-automatic enrolment.
He said: "I am still not completely convinced about workplace SIPPs. Group SIPPs do have a share of the market, for example I have seen barristers building their chambers through a SIPP. But I am not convinced blue collar workers need SIPPs.
"With auto-enrolment coming we are still going to get pensions apartheid."
He said it would remain common for a group SIPP to exist for executives, with a NEST-type arrangement for other workers underneath.
"But that type of arrangement doesn't need to be through a corporate wrap, which some of the players are talking about," added Chinn.
Bought plans in 1988 and 1989
To be added to model portfolio service
Launched 25 September