Friends Provident welcomes today’s government sponsored review into automatic enrolment and pension reform and is encouraged by the recommendation there should be no delay to automatic enrolment.
The savings provider is particularly encouraged that auto-enrolment will apply to all employers and believes this is essential to meet the public policy objective to get more low- and middle-income people saving for their retirement.
Friends Provident is also pleased the earnings threshold at which an individual is automatically enrolled into a workplace pension is to be increased. The provider believes the proposed optional ‘waiting period’ of up to three months before an employee needs to be automatically enrolled into a workplace pension is a welcome step in the right direction.
Colin Williams, Distribution and Marketing Director, Friends Provident commented:
“Today’s report is a truly helpful starting point to get everyone back to thinking in terms of pensions simplification. We are encouraged by the proposals that will make employer’s lives easier and help employees to secure their standard of living in retirement. The recommendation that NEST should go ahead as planned is welcome and we support the implementation of automatic enrolment in 2012. This will increase the level of responsibility on employers, providers and advisers. Together we need to ensure that the levels of financial education and engagement of the workforce are increased, so that people understand and value the contributions that are being made on their behalf, rather than just accepting them through inertia and ignorance.”
Source : Friends Provident Press Reelease