Only 16 per cent of employers believe their employees are saving enough for retirement, with 18 per cent believing their workforce is aware of the various retirement income options available and 13 per cent saying their workers are aware they no longer have to purchase an annuity, a survey by WEALTH at work has found.

The company believes that financial education is vital to make employees re-think their retirement plans. Director Jonathan Watts-Lay said: “It is critical that companies offer financial education to ensure employees save towards their retirement and understand the various retirement income options available to them at the point of retirement. The Association of British Insurers shows that a third of people do not shop around for an annuity when they reach retirement, and as a result, may be missing out on a higher income, potentially losing thousands of pounds over the course of their retirement.”

The research, carried out among 101 HR, Reward & Benefits and pension professionals, also showed that 71 per cent of employers believe there will be an increased requirement for specialist advice at retirement.

WEALTH at work head of retirement services Leslie Huss-Smickler added: “With the variety of workplace savings on offer and retirement income options available, financial education and advice has never been so important – we should not expect employees to become pension experts. Employers should not encourage pension saving in the workplace but then abandon employees when they need help making life changing decisions with their pension pot.”

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