New research on employer attitudes to pension provision has produced some worrying results, and the government must avoid any further delays to the implementation of auto-enrolment, according to NOW: Pensions.

Commenting in the wake of the Association of Consulting Actuaries’ 2011 pensions trends survey, NOW: Pensions said that the volume of opt-outs will be pivotal in whether auto-enrolment is a success.

Employers’ attitudes towards workplace pensions and employees’ confidence in the value of saving were identified as key determinants in the number who choose to opt out. Therefore, the ACA’s findings that a quarter of employers have budgeted for the move to auto-enrolment, and a fifth are actually looking to decrease their pension spend, was cause for some concern.

Chief executive of ATP-backed NOW: Pensions Morten Nilsson said ensuring the success of auto-enrolment was the key issue for the year ahead.

“Generally speaking it is clear employers have the best interests of their employees at heart, but obviously the current economic climate is not helpful. It is essential the government avoids any further delays or changes to the implementation of auto-enrolment, which may lead to increased confusion and waning of confidence.”

Nilsson went on to say that “many” employees are sceptical about pension saving, doubting that pension providers will safeguard their money and fearing their savings will disappear as a result of high charges and poor investment choices.

“It is therefore vital that this perception is changed; employers have a crucial role to play however the pension industry needs to take responsibility by offering products that are cost effective, transparent and include default investment options that are fit for purpose,” Nilsson said.

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