Seven out of 10 employers have taken no action regarding the freedom of pension changes and awareness of the landmark proposals is “frighteningly low” claims Jelf Employee Benefits
With only three months until the freedom of pensions proposals come fully into force, 70 per cent of 250 employers surveyed by Jelf Employee Benefits have yet to take any action with regard to the proposals.
Only 7 per cent of respondents have both reviewed their offering and sent employee communications to explain the impact of this regulatory change.
The survey also shows that savers in pension schemes may not yet fully understand or appreciate the new flexibilities. Despite the high media profile of this policy following the announcements last year, only 8 per cent of employers have received any approach from their employees on this important topic.
The survey also reveals that employers are supportive of the announced changes, with 63 per cent welcoming the proposals. But more than half of this group are also concerned about potential increased administration and employer costs. Only 15 per cent of employers do not welcome the change of legislation.
Jelf Employee Benefits head of benefits policy Steve Herbert says: “This is probably the biggest single change to the pensions landscape in a lifetime – and is supposedly driven by the desire of savers to have much greater access and flexibility regarding their retirement savings. Yet awareness of this issue currently seems frighteningly low.
“We are concerned that both employers and employees need to be better educated on this important topic. Without such education many older employees could make ill-informed decisions regarding their pension savings. We are also worried that criminals may see this lack of knowledge as an opportunity to create new pension scams with the express aim of separating employees from their retirement funds.”