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Pensions auto-enrolment could lead to 200,000 job losses

Auto-enrolment into pension schemes could result in 200,000 job losses, a study by the University of Warwick has found.

The study, by the university’s Institute for Employment Research department, has found that auto-enrolment into qualifying employer pension schemes and personal accounts from 2012 could lead to 200,000 job cuts due to a 2 per cent rise in labour costs for firms.

The IER’s Bernard Casey says administration costs, the range of salary levels of potential scheme participants and the possibility of take-up rates meeting Government expectations, could see labour costs rise by 2 per cent for firms, 1.4 per cent higher than the Pension Commission’s 0.6 per cent prediction.

Casey says the higher costs could “weaken” small firms, and “lead to business failures and redundancies”.


Early decision on PSB

The financial services industry has welcomed the FSA’s decision to accelerate consultation on the Professional Standards Board, which could see it gain statutory powers three years earlier than planned.

HL assessing independent label

Hargreaves Lansdown says it is reviewing whether to maintain its independent tag as a result of RDR proposals. It says no significant threats, retrospective changes or other costs have been seen as a result of the draft proposals since the bulk of its Vantage business is execution-only.


Aifa wants basic benchmark

Aifa director general Chris Cummings is disappointed that the basic advice category is exempt from QCF level-four qualifications and adviser charging rules.


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