While auto-enrolment has been a positive, the constant legislation and publicity have been counter-productive. Nobody likes change and we constantly find employees who feel that pensions are too complex and difficult to understand, whereas buying a house and using that as a pension fund is seen as easy and regulation free.
The industry needs a period without political interference in pensions, and could have done without the distraction of the government’s proposed Lisa, which will muddy the waters further. As the public is confused now, do we really need more choice?
It will require more time in education, and explanation in plain English, which will then need to be adapted to reflect our multi-cultural society. The key is to leave the employees with simple messages they can refer to as they go through life.
Brian Smyth is head of Ascot Lloyd Benefit Solutions
Key points
Auto-enrolment has had an effect on the savings market.
Few appreciate how much they need to save.
The industry needs a period without political interference in pensions.
