Employers To Launch Financial Education Strategies

Many Firms Dissatisfied With Communication About Auto-Enrolment


Two in five employers in the UK anticipate implementing a financial education strategy for their workers this year, according to new research by Hargreaves Lansdown.

In its HL Corporate Pensions report, the investment company found that nearly half of the 250 firms surveyed are concerned about whether their employees are saving enough money to be able to retire.

One in five employers said they would make sure their employees received better communications and guidance about auto-enrolment if they were able to go through the compliance process again.

Meanwhile, just a quarter (27%) rated the communications employees received as excellent, while the same proportion said communications were "acceptable" or worse.

"These results show many employers are ahead of the curve when it comes to their company pension," said Nathan Long, Head of Corporate Pensions Research at Hargreaves Lansdown.

“They recognise auto-enrolment has not gone far enough and are looking to workplace financial education to help bridge the savings gap."

Expert Opinion
Auto-enrolment has brought significant challenges for many businesses, with educating employees on the issue being high up on the list that employers have to consider.

"Helping workers to understand the issue is a vital part of implementing the scheme, but this is just one of the factors that small firms have to consider. Auto-enrolment will have raised a large number of questions for many employers and any with doubts should consider seeking legal advice for more support on the issue."
Nigel Bolton, Partner