Service levels, a provider contact, digital capability, price and M&A are the five factors driving an increase in switching that Aviva says has led to a near-doubling of enquiries from employers looking to move.
The provider says a secondary market within AE workplace pensions is developing now that many companies have had their original workplace pension scheme in place for a number of years.It says year-on-year enquiries coming into Aviva about switching AE providers are up 80 per cent.
Aviva says the vast majority of switching enquiries are still coming via advisers although during the last 12 months there has been an increase in the number of businesses making enquiries themselves.
During 2018, Aviva took around 1,200 calls from businesses who were considering moving their workplace pension scheme to Aviva.
Aviva head of workplace savings & retirement Malcolm Goodwin says:“SMEs and their advisers are now starting to understand that when it comes to their auto-enrolment provider, they do have the freedom to switch.
“Many businesses are now three years or more into AE and they are starting to look at what is being delivered by the scheme they originally signed up to.
“AE minimum contributions are rising again in April. Now is a good time to examine what is in place and ensure it is still suitable.
“SMEs are free to shop around for a workplace pension provider that is best for them. We’ve already seen an 80 per cent increase in enquiries and I expect that to keep rising. It is up to providers to ensure they are offering businesses what they need.”