Commenting on figures from the Department of Work and Pensions released today which show that an average of just 9 percent of people had opted out of being auto-enrolled into their employers’ pension scheme, Andy Seed, Pensions Director at KPMG in the UK, said:
“On the face of it, these figures look like great news for the auto-enrolment programme: less than ten percent of employees have opted out. But the pensions industry needs to be very careful about patting itself on the back just yet.
“The real measure of success for auto-enrolment will be whether the smaller employers can sustain this opt-out rate. Assuming postponement (which allows employers to delay the onset of auto-enrolment by up to three months) has been applied by many, if not all companies in the data sample, the statistics today cover just five months of data for only the very largest companies that have been through the auto-enrolment process. They’re the businesses with the largest employee numbers, established pension schemes, and the deepest pockets when it comes to communications and employee engagement.
“The next 12 to 18 months will be crucial in terms of establishing the full picture for auto-enrolment. When SMEs and micro-employers, who may have never engaged with pensions, start the auto-enrolment process, that's when we'll see the true picture of how successful targeting non-pension scheme members has been."
For further information please contact:
Margot Cowhig, KPMG Corporate Communications
Tel: 0207 694 4246 Mobile: 07920 274856: email@example.com
KPMG Press Office: 0207 694 8773
Notes to editors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.