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.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected