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‘Workplace communication is key’

Aviva has warned the Government there is still an automatic enrolment “awareness gap” among employees just months before the reforms are due.

The UK’s biggest employers will need to enrol all eligible employees into a company pension scheme from October.

The reforms will then be rolled out to medium and small firms between 2012 and 2017. The Department for Work and Pensions has been handed £11m by the Treasury to communicate reforms to consumers this year.

Research carried out as part of Aviva’s Working Lives report suggests that 70 per cent of employers are aware of the upcoming changes while 68 per cent of employees were found to have little or no knowledge of auto-enrolment.

The report also found opt-outs could be “significant”, with 37 per cent of the 2,000 employees surveyed saying they may quit their pension scheme.

The report says: “Businesses, Government and the pensions industry across Britain have significant work to do in encouraging employees to start putting some of their hard-earned cash aside for their retirement.”

Hargreaves Lansdown head of pensions research Tom McPhail says: “You would not necessarily expect employee awareness to be high at this stage.

“The key test will be whether the pensions industry can rise to the challenge and deliver good workplace communication to employees. Without this, the whole project is likely to fall flat on its face.”


Lloyds to shrink its share of the mortgage market

Lloyds Banking Group is planning to cut its share of the mortgage market from 28 per cent to 25 per cent. In a call with analysts to discuss the company’s first quarter results last week, LBG chief executive Antonio Horta-Osario pledged to increase the bank’s share of the retail deposit market and reduce its share […]


Council looks at 20% Mig deal for FTBs

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Greengross: Govt reforms do not address small pot advice problem

Baroness Sally Greengross has called on Lord Turner, Mark Hoban and Steve Webb to attend a public debate on the impact the RDR will have on people with small pension pots. In March this year, 16 cross-party politicians and industry leaders signed a joint letter, drafted by ILC-UK chief executive Greengross (pictured), calling on the […]

Public survey of MPs’ value for money

The body in charge of setting MPs’ salaries and pensions has launched a public consultation on whether MPs are giving the public value for money. The Independent Parliamentary Standards Authority has already introduced a pay freeze for MPs and a 1.85 per cent increase in their pension contributions for 2012/13. IPSA chair Sir Ian Kennedy […]


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