IFAs key to plugging auto-enrolment knowledge gap

Auto-enrolment is opening up a pensions knowledge gap among employers which the industry should be filling warn IFAs.

Over half (52%) of advisers polled by Aegon think employers will need "greater communication" in the run-up to auto-enrolment in 2012, according to the provider's latest IFA Insights research Corporate Advice - The Changing Landscape.

Two-thirds (65%) said active promotion of quality pension schemes is necessary if advisers are to minimise ‘levelling down' of corporate pension provision. Better promotion of non-core benefits such as salary sacrifice is also seen as a popular way to minimise levelling down.

Aegon says the survey of 100 IFAs shows real adviser concern about the changing regulatory environment and the impact of auto-enrolment.

Two thirds (61%) of respondents said promotion of private schemes should increase, whilst over half (53%) believe upping marketing activity such as seminars and education in the workplace would help improve understanding of alternative pension provision.

Aegon says the research points to advisers' belief the industry should be actively encouraging quality pension provision and improving employer and employee engagement in pensions.

National Employment Savings Trust (NEST)would not be able to achieve this, it added.

Head of corporate marketing at Aegon Neil Davies says: "With the new regulatory environment, the new employer responsibilities offer a genuine opportunity to get millions more people saving for their retirement.

"As auto-enrolment approaches, our findings highlight the positive impact that a proactive approach can have on employer and employee engagement in pensions.

"Employers should be encouraged to set up or maintain their more generous private pension schemes and people need encouragement to remain in these schemes and contribute more than the statutory minimum. We believe successful reform requires a thriving pensions market alongside NEST."