Enquiries to Aviva from employers and advisers looking to switch pension provider were up 60 per cent during the first half of 2019, compared to the first six months of last year. Two thirds of those enquiries came from advisers while the remaining third were direct from employers, the provider says.
It comes as employers and employees are increasingly recognising the value of a well-run workplace pension scheme. In a recent survey by Aviva, pensions came second in a poll of workplace benefits employees were most interested in, just behind annual leave.
Many businesses have now had their schemes for a number of years, providing them with time to assess if they are delivering what they require.
This has led to a ‘secondary market’ where businesses are looking to potentially change their workplace pension provider. This secondary market is being fuelled by those companies and their advisers who are now looking around to see what else is available.
Aviva head of workplace savings and retirement Malcolm Goodwin says: “A few years ago, some employers may have seen setting up a workplace pension scheme as an administrative hassle that they just needed to get done as quickly as possible.
“But it is becoming clear that a pension is a really valuable benefit to employees. This is leading to businesses and their advisers re-evaluating their pension schemes and making enquiries about switching.
“Pension schemes and pension providers can vary widely. I’d encourage employers of all sizes to assess whether they and their employees are getting the value for money they had hoped for.”