Employees that are not being offered pensions advice from their employer are urging for them to do more, according to research from JLT Employee Benefits.

The JLT report, which surveyed 2,000 40-65-year olds, found that just 23 per cent of employees receive advice from their employer, and 65 per cent of those not offered financial advice as a benefit said they would like to be.

Despite this, the research also found that employers are one of the least trusted sources of financial advice, with only 26 per cent 40-65 year olds likely to trust financial advice given by their employer.

JLT Employee Benefits director of pension decision service, Richard Williams, said: “Our research reveals an interesting paradox. It is clear that too few employers are offering sufficient support to their employees around pension savings, and that advice as a benefit is not as commonplace as it perhaps should be.”

Williams has called for employers to partner with “reputable experts who can be the credible face of pensions advice” for the company.

According to the poll, 55 per cent said independent financial advisers are the most trusted source of advice, followed by the government’s Pension Wise (51 per cent) and their banks or pension provider (33 per cent).

The report also found that employees’ lack of engagement is highlighted by their lack of knowledge around key pension-related products and policies. It found that 46 per cent of respondents don’t know what an annuity is, while even less do not understand flexible access to drawdown.

In addition, 79 per cent of respondents did not know you can use your pension savings to pay for financial advice.

Williams added: “A lack of engagement fosters a lack of awareness, and this research shows how far the pensions industry still needs to go to properly engage with savers and get them thinking about their retirement.

“It is interesting that, despite being relatively poorly informed about pensions, middle-aged employees think that younger generations know even less. Upskilling the financial literacy of the workforce is a huge challenge for employers, government and society more broadly. However, given that the prize is for better financial planning and better retirement outcomes for UK workers, it is a challenge worth rising to.”

Share Story: