Early auto-enrolment could increase pots by 15%

Early auto-enrolment could increase pension pots by as much as 15% and help employers, industry figures say.

B&CE Benefit Schemes deputy chief executive, John Jory, says it was a "wasted opportunity" to wait until 2012 before auto-enrolling employees.

If a 25-year old auto-enrolled at 8% in 2009, these extra three years before 2012 could add 15% to their retirement fund, he explains.

Standard Life head of pension policy John Lawson agreed. He says: "It would help employers that want to auto-enrol now - why shouldn't they just do it?"

He says there would be a huge number of firms forced to enrol on October 1, 2012 - and a huge number of non-joiners who would opt out.

Lawson says: "There's going to be a huge amount of work, all within one month. Early auto-enrolment will allow employers to go early and avoid the rush."

He adds: "Why is it a bad thing to enrol people in a pension scheme early, particularly if employers are making contributions?"

This comes as the Conservatives said they would investigate early auto-enrolment proposals "as a priority".