An 8% increase in retirement contributions: AE

AE has made significant waves in the pensions industry since its establishment, increasing pension participation to a staggering 87% of eligible workers. Retirement contributions now sit somewhere in the region of £90.4bn, an 8% increase from last year, and 18.7 million people are saving into a workplace pension, 10 million of which have been auto-enrolled. AE has well and truly shaken up the pensions industry, with a larger focus than ever on retirement savings. Employees are more engaged and there is a larger onus on employers to fulfil their legal requirements and obligations.

You need to consider your AE obligations when managing risks, undergoing consolidation, initial employee assessments, opt ins/outs, issuing of statutory employee communications and ongoing record keeping to ensure TPR compliance. You need to be aware of the state and quality of your data, and understand all the things it can tell you. In the last two years, c40,000 companies have been fined for not meeting their AE requirements, with a further 40,000 avoiding fines after making the recommended amendments. The number of TPR-issued fines signifies a tougher stance on non-compliance with AE obligations.

Web-based interfaces and middleware software do exist to support you and help manage the entire end-to-end process, workforce assessments, opt-ins/outs, contributions and communications. An integrated communications portal means members are fully informed and integrated TPR data validation reports ensures records are correct, maintaining compliance.