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Employers getting ‘switchy’ over workplace pensions

New figures from Aviva show that the secondary market in workplace pensions is continuing to thrive.

Enquiries coming into Aviva from employers and advisers looking to switch pension provider were up 60% during the first half of 2019, compared to the first six months of last year. Two thirds of those enquiries came from advisers while the remaining third were direct from employers.

Workplace pensions became mandatory for UK employers in 2012 through auto-enrolment.

It comes as employers and employees are increasingly recognising the value of a well-run workplace pension scheme. In a recent survey* by Aviva, pensions came second in a poll of workplace benefits employees were most interested in, just behind annual leave.

More than a million businesses have set up a scheme and 10 million employees have begun saving for their retirement.

Many businesses have now had their schemes for a number of years, providing them with time to assess if they are delivering what they require.

This has led to a ‘secondary market’ where businesses are looking to potentially change their workplace pension provider. This secondary market is being fuelled by those companies and their advisers who are now looking around to see what else is available.

Malcolm Goodwin, Head of Workplace Savings and Retirement at Aviva, said:

“A few years ago, some employers may have seen setting up a workplace pension scheme as an administrative hassle that they just needed to get done as quickly as possible.

“But it is becoming clear that a pension is a really valuable benefit to employees. This is leading to businesses and their advisers re-evaluating their pension schemes and making enquiries about switching.

“Pension schemes and pension providers can vary widely. I’d encourage employers of all sizes to assess whether they and their employees are getting the value for money they had hoped for.”

*Survey of 2,011 employed people carried out by Censuswide on behalf of Aviva in March 2019

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Media enquiries:

Ben Moss

Corporate and Workplace

Notes to editors:

 

  • Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.
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