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Far more work
must still be done with employees to build their understanding of
the benefits of workplace pensions, says the National Association
of Pension Funds (NAPF).
The latest findings from the NAPF Workplace Pensions Survey
show that 29 per cent of employees with access to a workplace pension
are unaware of pension tax relief, and 22 per cent are unaware of
employer contribution rates. The NAPF estimates that this equates
to five million and 3.8 million employees respectively.
The NAPF believes that simple and regular information on the benefits
has the potential to boost retirement savings among the British
workforce, especially for those who have not joined their employer’s
pension scheme.
Findings from the survey also showed that one in three (34 per cent)
scheme members felt that their employers were not doing enough to
explain the pension they offer. This figure increased to 56 per
cent for those who had the opportunity to join the scheme but had
opted not to.
Nigel Peaple, NAPF director of policy, said: “The lack of
understanding of tax relief and employer contributions presents
an opportunity to boost retirement savings of the British workforce.
“Through regular and jargon-free communication, employers
and the pensions sector have the opportunity to re-emphasise the
benefits of workplace pensions. Addressing this knowledge gap could
be a quick win.”
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Pensions Age June 2008
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