Employers fail to explain retirement options to staff

A number of UK employers are failing to provide adequate information about pensions and retirement options to staff.

According to a survey of the top FTSE-350 companies by JPMorgan Invest, a third of employers fail to explain the full selection of retirement options to staff.

The research also revealed that one-in-five employers (21%) focus only on annuities, which limits the choices available at retirement. A mere 4% of companies offer an active education programme for staff to explain retirement options.

Jonathan Watts-Lay, director at JPMorgan Invest, said: “The apathy shown by many employers towards offering correct financial information regarding pensions is worrying. Many employers save diligently into their pensions throughout their lives yet if employers don’t ensure retirement income options are understood, these pension saving will not be converted to the most appropriate retirement income.”