LEGAL & GENERAL PASSES 500,000 AUTOMATIC ENROLMENTS.
09 December 2013
Legal & General has auto enrolled over a half a million new members (525,000) into company pension schemes since staging commenced in October last year.
The numbers are well ahead of expectations and take the total number of pension scheme members administered by the company past the 1 million mark.
Many of the companies choosing Legal & General for their Automatic Enrolment (AE) process had their staging dates early in the process, and many had existing pension assets they wished to consolidate.
As a result the influx of new schemes has driven AUA on the Legal & General WorkSave platform to £7.9bn (end Q3 2013) – up 49% on the first 9 months of 2012 (£5.3bn) (1).
The higher than expected numbers are due to lower than anticipated opt out rates, particularly among younger employees (i.e. those under the age of 30), which are well below Dept. for Work and Pensions(2) original assumptions.
John Pollock, Legal & General Assurance Society CEO said: “We have delivered a low cost, effective AE process and this is being well received by employers and employees alike.
Passing our half a million milestone is a major contribution to the nation's longer term savings' needs as well as a significant percentage of the TPR's registration data for numbers auto enrolled to date(3).
To have delivered such large scale in what is a relatively short time in the pension world reflects the robustness of our WorkSave platform.
Clients completing AE already range from among the largest employers to companies with around 250 eligible staff members.
We will be forging ahead with auto enrolment for SMEs over the coming months as we prepare for the next phase of staging.
Our investment in straight through processing and online tools means we are well positioned to deal with this and deliver our 0.5% price promise to all new AE default(4) scheme members.”
Legal & General was named Auto Enrolment Provider of the Year by the FT Pensions and Investment Provider Awards (2013), Corporate Platform/Wrap Provider of the Year in the Professional Pensions Awards (2013) and Workplace Savings Provider of the Year in the Workplace Savings and Benefits Awards (2013).
Notes to editors
- Workplace Savings assets under administration for Q3 2013 year to date were £7.9bn and for Q3 2012 year to date were £5.3bn.
- DWP's Attitudes to Pensions survey, published November 2012, indicated 70% were likely to stay in a pension scheme if eligible to be automatically enrolled.
- TPR registration report November (July 2012 to end October 2013):
i) eligible jobholders automatically enrolled into an AE pension scheme = 1,920,000
- We provide high quality default investment options, often linked to de-risking strategies, which are aligned to the member’s retirement date (called lifestyle profiles).
The 'Multi Asset Lifestyle Profile' is the default for our WorkSave Pension. This default option initially invests in the L&G Multi Asset Fund then switches to L&G (15 year) Gilts Index Fund and L&G Cash Fund.
It offers a diversified investment approach, including global assets, to protect savers against volatility and help to reduce downside when any one specific asset class or investment market is underperforming.
The L&G Multi Asset Fund aims to provide long term growth through a broad range of investments including International Equities and Bonds, UK Equities, Bonds and Gilts, Property, Cash and Cash Equivalents.
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies.
As at 30 June 2013, we were responsible for investing £440 billion worldwide on behalf of investors, policyholders and shareholders.
We also had over 7.3 million customers in the UK for our life assurance, pensions, investments and general insurance plans.
We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
We are a member of the Association of British Insurers.
For more information please contact:
About Legal & General
Legal & General Assurance Society Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 166055.