The Government's workplace pension reforms represent a
significant challenge for small firms, many of whom will have to
offer their employees an occupational pension scheme for the first
time. This research report identifies how ready small businesses
are for the reforms and how financial advice can help.
Purpose of research
- Automatic enrolment is a potential game changer for UK pension
provision - bringing an estimated 10 million people into long-term
saving for the first time.
- Successful implementation depends on the decisions made by 1.1
million micro (1-9 employees) and small (10-49 employees) business
employers who are the bread and butter to nearly a third of
Britain's private sector workforce. These firms need to make the
right calls on what pension scheme they will offer their employees,
how they will start-up and administer the scheme, and how they will
advise staff members on pension saving.
- Financial advisers may be able to help in this regard though
there has been some debate about whether, and how, firms might seek
advice in the run-up to implementation of the reforms.
- The paper follows up similar research conducted by the CII last
- One year on, and ten months after the launch of auto-enrolment
reforms and the Government's associated television media campaign,
this report looks at how these small business employers have
responded and whether their attitudes have changed.
- Small business employers will be crucial to successful
implementation: the success of auto-enrolment depends on small and
micro firms making the right decisions before and after their
- Awareness: raised awareness is vital to ensuring firms choose
the right workplace pension scheme and offer their employees
appropriate assistance. Improved communications from government,
industry and the regulator will be necessary as staging dates draw
- Financial advice is favoured: small business employers are
increasingly likely to look to financial advice to help them
navigate auto-enrolment as 2015 approaches.
- Reducing the pensions gap: advisers and providers may be
able to play a crucial role in reducing the nation's pensions gap
by providing appropriate assistance to firms in need.
View the attached document »
A quick guide to selecting a good quality pension scheme for
auto-enrolment (The Pensions Regulator, July 2013)
CII's research into small employers' readiness for auto-enrolment
CII research paper - An age-old problem: developing solutions for
funding retirement (May 2011)
CII policy briefing: making auto-enrolment work (Oct 2010)