Aviva has revealed that the proportion of UK businesses setting up their workplace pension after their staging date has reached a record high.
- 18% of businesses applying to Aviva for a workplace pension missed their staging date in Q2 2017
- The proportion of companies who are late setting up their workplace pension is the highest on record
During the second quarter of 2017 (April, May & June) almost 1 in 5 (18%) employers applied to set up their workplace pension with Aviva after their staging date (the date given to them by The Pension Regulator) had passed. Those businesses put themselves at risk of a fine for not complying with auto-enrolment regulations and limit their options when choosing a workplace pension as not all providers will accept ‘late stagers’.
The table below details the proportion of Aviva’s workplace pension applicants who applied during 2016 and 2017 in comparison to their staging month.
Application made after staging month had passed
Application made in the month of staging
Application made in the month prior to staging
Application made 2 months prior to staging date
Application made more than two months prior to staging date
The rise of the ‘late-stager’
Aviva’s data shows a clear rise in the proportion of companies missing their staging date. Just over a year ago in Q1 2016, only 1% of employers wanting to set up a pension with Aviva had passed their staging date. Fast-forward to now and that figure has increased 18-fold.
At the same time, the proportion of companies sorting out their auto-enrolment obligations more than two months in advance has seen a steady decline, from a high of 40% of applicants 12 months ago to just 19% in Q2 2017. This is in some part to be expected as we approach the end of companies having to establish their pension scheme in accordance with a staging date. More recently formed, and therefore on average smaller employers, are now going through AE.
The end of the ‘late-stager’
From October this year the rules around setting up a workplace pension are changing. At the moment, existing companies are given a staging date by which time they must have a workplace pension scheme in place.
However, as announced by The Pension Regulator, any new company starting up from the autumn will have to set up its workplace pension as soon as it takes on an employee.
Andy Beswick, Managing Director of Business Solutions at Aviva, said:
“Auto-enrolment has been running for five years and been a great success so far in getting more people saving for their retirement. But our data shows that as we move towards smaller businesses needing to set up auto enrolment pensions, more employers are struggling to prioritise their workplace pension.
“These companies don’t tend to be blessed with big HR departments or benefits consultants and therefore have to do it themselves, alongside the accounting, the payroll, the admin and actually growing their business and making it successful.
“If there are employers who have been putting it off, now is the time to take action. The industry has done a pretty good job of making the process as simple as possible and by going online employers can now find all the information they need and set up their pension scheme.
“Don’t put yourself at risk of a fine. Embrace the workplace pension as a tool that can actually improve your business and act as an important incentive for your employees.”
Media Enquiries: Ben Moss, Senior Media Relations Manager +44 (0)7827 832 395 / 0117 928 5843 email@example.com
Notes to editors:
• Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.
• In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
• Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £340 billion in assets. Total group assets under management at Aviva group are £450 billion.
• Aviva helps people save for the future and manage the risks of everyday life; we paid out £34.4 billion in benefits and claims in 2016.
• By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
• The Aviva media centre at http://www.aviva.com/media/ includes company information, images, and a news release archive.
• For an introduction to what we do and how we do it, please click here http://www.aviva.com/about-us/aviva/
• For broadcast-standard video, please visit http://www.aviva.com/media/b-roll-library/
• Follow us on twitter: www.twitter.com/avivaplc/
• Follow us on LinkedIn: www.linkedin.com/company/aviva-plc
• For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
• We have a Globelynx system for broadcast interviews. Please contact the Press Officer noted above if you would like to make a booking.