A growing number of businesses are considering changing their workplace pension provider, new research finds.
Data from Aviva has found an 80 percent year-on-year increase in enquiries from SMEs, or their advisers, about moving to a new auto-enrolment (AE) workplace pension provider.
It found the vast majority of switching enquiries are still coming via advisers. However, during the last 12 months there has been an increase in the number of businesses making enquiries themselves.
Aviva said many SMEs have had their workplace penion scheme for a number of years, providing them with time to assess if it is delivering what they require, which has led to a secondary market where businesses are looking to potentially change their AE pension provider.
It said this secondary market is being fuelled by those companies and their advisers who are now looking around to see what else is available.
Malcolm Goodwin, head of workplace savings and retirement, at Aviva, said: “When AE was first introduced some businesses will have viewed it as a hassle - something to just get done and out of the way. But since then, some of those businesses will have seen major expansion or may have changed their view on the importance of workplace benefits.
“Whatever the reason, 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.”
Goodwin said he expects the 80 percent figure to continue to grow.