Over A Third Would Like More Guidance On Retirement Planning

Only one in five workers have been updated by their employer about new pension laws that will take effect from April 2015, according to research.

Portus Consulting surveyed 1,154 staff in December 2014, finding that only 21% of staff had received information about the upcoming pension reforms, which will give over-55s the option to take a series of smaller lump sums.

This is despite the fact that over a third (36%) said they would welcome more help from their employers on retirement planning, particularly among 35 to 44-year-olds.

While 64% said they have heard of the changes, less than half (40%) believed that they were saving enough for retirement, whether into pensions or alternative savings vehicles.

Stuart Gray, Chairman of Portus Consulting, said for most people, the changes in April will be the biggest shake-up to retirement savings in a lifetime.

"There is also a real opportunity for employers to underline their commitment to staff by taking a wider role in providing support on," he said.

"Clearly, that can be challenging for employers but there will be real benefit from providing help."

Expert Opinion

This research has highlighted some interesting trends and comes after another study – by HL Corporate Pensions – found that two in five employers in the UK were planning to introduce a financial education strategy for their staff. <br/> <br/>"The upcoming changes are just the latest in a series of reforms in this area, with auto-enrolment also being a massive development. As such, many employers are having to consider taking on the responsibility when it comes to helping their workers to understand the implications of these changes on their retirement saving. <br/> <br/>"Many employers have legacy salary based pension funds with large deficits. If there were wide take-up by members of encashment options, this could substantially reduce those deficits. Employer interest in this area can only increase therefore." Nigel Bolton - Partner