“The challenge will be to engage those people and support their employers as most employers don’t know enough. But when you suggest they need to put more than the minimum contribution in and why, they get it,” added Fairweather.
Seb Sherburn, a senior pensions consultant at Hub Pension Consulting - part of Just Group - said the products available could “get the job done.”
He argued that it was getting people to the stage where they were able to access advice.
“In a perfect world their company would pay for, or subsidise, advice.”
“I’ve seen clients not necessarily willing to engage but have been nudged by their scheme and are near retirement.”
Not getting advice meant a lot of people resorted to taking the whole fund as cash or stumbling into the default annuity or default drawdown plan.
“Any fee is a hurdle, people are not brought up to see the value of advice, they don’t want people telling them what to do.”
“Even free can be a hurdle, as Pension Wise is not getting a spectacular take up.
“Auto enrolment has done a great job but the biggest thing is how we help people make good decisions - it’s guidance or advice, but mainly it’s about helping them.”
Samantha Downes is a freelance financial journalist
