Increasing numbers of small businesses are looking to change their workplace pension scheme, data from Aviva has shown.
In the 12 months to September 2018, the insurer saw an 80% year-on-year increase in enquiries from SMEs about moving to a new auto-enrolment pension provider.
The rise in enquiries has been driven by a shift in the auto-enrolment market, from a ‘primary market’ in its initial stages to a ‘secondary market’ of businesses re-evaluating their pension scheme.
Auto-enrolment was first introduced in 2012 for larger businesses, with businesses of other sizes joining at different staging dates.
The final staging date was in early 2018, when most businesses were included under the requirements of auto-enrolment.
According to Aviva, businesses that began auto-enrolment a number of years ago are now assessing whether their scheme meets their requirements and looking at their other options.
Malcolm Goodwin, head of workplace savings and retirement at Aviva, said:
“Since auto-enrolment was first introduced, some businesses will have seen major expansion or may have changed their view on the importance of workplace benefits.
“We are seeing a major increase in the number of enquiries from businesses and their advisers, who are realising they have the freedom to switch if they aren’t happy with their current provider.”
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