Less than half (45%) of respondents believe that they have the resources and systems in place to provide pensions flexibility once changes announced in this year’s Budget come into force, according to research by Wealth at Work.
Its report, Do your employees need to rethink retirement? which surveyed 105 HR, reward and benefits, and pensions professionals, also found that 75% of respondents are aware of the legal obligations around the guidance guarantee.
More than half (57%), meanwhile, do not know if their employees will know where to seek advice from, or believe that their employees will not know how to access regulated financial advice.
88% of respondents consider professional retirement planning crucial for their employees.
The research also found that:
- 58% believe their workforce is unaware of their retirement income options, such as income drawdown or annuities
- 52% believe auto-enrolment improved understanding of the importance of pension savings
- 23% of employers believe that their staff are well equipped to understand what level of income they will get from their company scheme at retirement
- Just 15% of respondents believe their workforce is saving sufficiently for retirement.
Jonathan Watts-Lay, director at Wealth at Work, said: “It’s good to see many employers now have retirement planning high on their agenda, although more needs to be done to encourage employees to maximise retirement savings.
“Without the right financial education, guidance and advice, employees could be left incredibly vulnerable to making poor decisions.”