New research reveals the extent to which companies are breaching disclosure rules over retirement income options
Despite the guidance set by the Pensions Regulator, new research revealed today that 30% of UK
employers failed to disclose adequate pension guidance to their employees. 24% failed to inform
them of their choices within 6 months of their retirement date.
In the research, the Pensions Regulator comments, “It is essential that members understand
their rights and choices, so that they can make the right decisions based on their circumstances”.
Furthermore, its expectations stretch beyond simply compliance and that it expects trustees to
focus on good practise.
David Cassidy, Chief Executive Officer at
WEALTH at work comments, “Many employees save diligently into their pensions
throughout their lives yet if employers don’t ensure retirement income options are understood,
these savings may not be converted into the most appropriate retirement income. Employees now have
a wealth of choice and utilised correctly, they can significantly boost pension income, yet all
this choice means confusion. Sending members densely worded printed packs of information is not
particularly helpful and the Pensions Regulator is to be applauded for emphasising that good
communications, which I take to mean guidance people will actually understand, can significantly
impact the future of those approaching retirement. In our opinion, a well implemented
financial education programme along with the appropriate advice is the best
solution to help employees make more informed decisions crucial to their immediate and long term
financial well-being”.
WEALTH at work is a leading provider of
financial education and employee wealth management services in the
workplace with an unrivalled reputation of delivering real results for its
clients.
WEALTH at work provides a service which allows employees to maximise the value of
their benefits by providing
financial education tailored to the needs of individual companies and of different
employee groups within those companies. Its Retirement Income Options programme is designed to
encourage members to make active decisions around their choices through interactive seminars
supported by online decision tools or one to one guidance.
Please see the
'UK
employers breach disclosure rules set by the Pensions Regulator' PDF attached.
