Just 21 per cent of UK workers say their employer has contacted them about the changes to pension laws with less than three months to go to the launch of new rules on how retirement savers can take their pension income, according to research from Portus Consulting.
Yet more than one in three employees would welcome guidance on retirement saving ahead of the launch of the UK’s pension revolution in April, with just 40 per cent believing they are saving enough for retirement either into pensions or alternatives such as ISAs or property.
Portus’s nationwide study found 36 per cent of workers want their employers to provide support on retirement planning rising to 46 per cent among those aged between 35 and 44.
Awareness of the new rules is relatively high, with 64 per cent of employees saying they have heard of the changes rising to 87 per cent among those aged 55 to 64 who will be the first to take advantage of the new legislation.
The research found around one in five employees already receives support on retirement planning and retirement decision making from their employer – and value the guidance that is provided. But 72 per cent of employees say they have not been contacted by their employer with any information about the changes to pension laws while another 7 per cent say they do not know whether they have been contacted.
Portus Consulting chairman Stuart Gray says: “Employers are seen as a valued source of education and support by substantial numbers of employees and there appears to be strong demand for guidance on retirement planning from workers.
“The changes to pension laws due in April will mean the biggest change to retirement saving in most people’s lifetime and it is inevitable that there will be confusion and potentially problems.
“However there is also a real opportunity for employers to underline their commitment to staff by taking a wider role in providing support on retirement planning. Clearly that can be challenging for employers but there will be real benefit from providing help.”