Less than one-fifth (16%) of employer respondents are referring their employees to the Pension Wise service, compared to 20% in October 2015, according to research by Close Brothers Asset Management.
The latest Close Brothers business barometer, which surveyed 917 employers, also found that more than a third (36%) of respondents offer employees access to financial advice to help them understand their retirement options.
The research also found:
- 30% of respondents use pensions engagement as a means of responding to the pension reforms introduced in April 2015. This compares to 25% of respondents in October 2015.
- 14% of respondents use retirement seminars to inform employees about their retirement options, compared to 12% in October 2015 and 8% in July 2015.
Jeanette Makings (pictured), head of financial education at Close Brother Asset Management, said: “The [March] Budget saw an increase in the tax and national insurance relief limit for pension advice in the workplace, encouraging more employers to arrange pension advice for staff, which is hugely positive and is a real signal of an expected increase in demand.
“It is encouraging to see more employers are already increasing their support for staff, engaging them with the pension reforms and providing dedicated retirement seminars. But there is still more that can be done.
“Employers play a central role in staff wellbeing, and ensuring staff are well informed about how to make the most of their workplace benefits, including pension decisions, is essential for staff retention and protecting the business bottom line.”