This meant they were less likely to actively consider their options regarding workplace pensions, nor the impact of decisions on employees.
Employers rarely switched their pension provider as they felt it was too difficult a process. The few who had cited dissatisfaction with their provider’s customer service as the main reason.
Worries around small pots consolidation options included concerns around who the administrative responsibility would fall on, be it employers or the government, as well as time costs and how consolidation may impact previous pots.
When asked about ESG investments, most employers said they would offer ESG schemes as an option rather than the default, due to concerns about the risk that may come with poor investment returns.
The economic recovery from the pandemic, alongside current market turbulence, presents a challenge to pensions engagement and contributions, employers said, yet the DWP said it is confident employers will still meet the requirements of AE, even with greater pension costs factored in.
Tom Higgins is a freelance reporter at FTAdviser's sister publication, Pensions Expert. Additional reporting by Alex Janiaud.
