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Over half of employers unable to cope with the new pension changes
2nd December 2014
New survey results available from WEALTH at work – leading providers of financial education, guidance and advice in the workplace have revealed over half (51%) of employers that responded do not have, or don’t know if they will have the resources and systems in place to cope with demand after the pension changes come into force in April 2015.
Jonathan Watts-Lay, Director, WEALTH at work, comments, “These figures are alarming as the pension changes are due to be implemented soon – so this is something that employers should address without delay.”
The survey results also show that 58% believe that their employees are unaware of their retirement income options such as annuities or income drawdown and a further 53% of participants believe that their employees aren’t aware of the advantages and disadvantages of each retirement income option. This is hardly surprising considering that 43% of employers provide no support, or only offer written communication for employees at retirement.
Watts-Lay adds, “If employees are made aware of their retirement income options, and understand the advantages and disadvantages of each, an employee can make a more informed decision about when and how to retire.”
“Failure to do this could mean poor decision making, resulting in them potentially losing thousands of pounds over the course of their retirement either through not getting as much income as they should have, or paying more tax than they needed. Financial education, guidance and advice are all tools available to employers and employees and aim to ensure the risk of making unsuitable and often irreversible choices are minimised.”
Over half of employers unable to cope with the new pension changes (576 downloads)
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