The workplace savings market is attracting a great deal of attention. Many consider it the best opportunity to close the savings gap. With auto-enrolment (AE) having been rolled out across large employers and SMEs currently staging, unprecedented numbers of consumers have become investors. Whilst admittedly most have been nudged into investing, they are investing nonetheless.
In the 2015 edition of our Workplace Savings Guide, we focus on the provision of DC workplace savings from larger scale providers – those with 100,000+ employees in a workplace pension or savings vehicle.
The report focuses on the following:
- Market size and factors impacting the size and shape of the workplace savings market
- Factors influencing provider selection
- Provider positioning in the market and user reviews of each provider
- Employee engagement and the rise of guidance and robo-advice
- Support offered in the transition to retirement
- Innovation in investment management and the factors influencing fund selection
Findings include:
- Workplace savings propositions from the big providers (those with over 100,000 scheme members) reached £233bn as at 30th September 2015. Aviva Friends Life, Legal & General and Standard Life are the largest providers based on AUA.
- One fifth of employers eligible to rebroke for AE will review providers in 2016. That represents more than 2,000 mid-sized and large employers employing more than 3 million employees.
- Ease of use for employees and cost/charges were named the most important features of a workplace savings provider among advisers and employers.
- Royal London was the top rated Workplace Savings Provider in our survey of employers, EBCs and corporate advisers. Royal London got top marks for ‘ease of use for employees’. Fidelity, Standard Life and L&G followed not far behind with good marks for communication and financial education, integration with payroll, financial planning tools and integrated flex-benefit tools.
- We are beginning to see some slick innovation in the form of online guidance and robo-advice. Innovations are pushing the envelope with digital tools that help investors understand their retirement income situation and in some cases how they might draw down those savings.
- The at-retirement moment has become increasingly complex. Providers have stepped up efforts post-pension freedoms to engage with employees nearing retirement. The wake-up service that used to kick-in six months before retirement has shifted to packs being sent as early as age 45. Our survey reveals that employers expect to play a bigger part in helping employees prepare for retirement.
For more information or to get a copy of this report, please email enquiries@platforum.co.uk.