20/07/2011
By Adam Cadle
Only 23% of employers believe their employees are aware of the different retirement income options that are currently available, a survey by WEALTH at work has discovered.
The survey of UK companies, conducted online during May and June 2011, also found that only 21% of companies believed their employees are saving enough for retirement.
Due to the various pension regulation changes, 60% of employers think there will be an increased requirement for specialist retirement advice. However, 85% of the companies surveyed said it will provide some sort of support to employees, with 39% opting for written communication as the most suitable option.
Auto-enrolment received mixed responses by employers, as over half believed it will be greeted both positively and negatively by employees, increasing for 67% of FTSE 350 respondents.
WEALTH at work director Jonathan Watts-Lay said: “It is now critical that firms offer financial education to their staff at retirement to ensure they understand the various retirement income options available.
“This should be supported by advice to ensure employees make the right decision for what is increasingly becoming the most critical financial decision during their life. This will allow them to plan adequately – especially as selecting an annuity or the wrong annuity is an irreversible decision and if not suitable, could have a detrimental impact on an individual’s financial well-being for the rest of their life.
“It is simply wrong to encourage pension saving in the workplace but then to abandon employees when they need to make life changing decisions with their pension pot.”
