Capita Hartshead has revealed that over 90% of defined benefit schemes have reported no major improvement in member take-up since A-Day on the 6th April. Nine out of ten respondents to their poll reported that pension simplification has not improved member take-up, provided benefit schemes, simplified administration or made the scheme more attractive to prospective clients.
Seven out of ten also do not believe the changes have improved financial security, which, was one of the main aims of the Pensions Act. But three quarters of those polled supported Lord Turners proposals for the State Pension Reform, although two thirds of respondents said that auto enrolment would make them revise or even abandon their current scheme. Seventy per cent of the 243 occupational pension schemes surveyed said that pension simplification has brought about an increase in communication with their members, usually through newsletters and scheme booklets.
Our view
What a surprise! Compulsion is the only way people will save, but it should not be forced on employers as they plan to do.