Following a recent Treasury financial promotions order, employers are now able to promote their pension schemes to employees. The Work and Pensions Secretary, David Blunkett has announced plans for employers to automatically enrol employees into pension schemes.
Our view
Whilst we believe automatic enrolment is the right thing to do, if it is introduced the costs on employers will rise.
Existing employees will have to be consulted about the pension scheme and may need contract changes. More red tape and regulation will prevail in the short term but we see this as the only way of getting employees to save towards retirement.