Pensions consultant Grove Corporate Pensions has launched a new division, Grove Corporate Retirement Options, to help employees with their retirement options.
The service will provide employers with their own information website to help employees understand their options.
Mike Ormond, financial adviser and founder of Grove Corporate Pensions, said: “Like it or not, we are becoming a more litigious society.
“Both employers and trustees of defined contribution (DC) pension schemes need to be careful because it might not be long before they could find themselves in court trying to explain why they did not provide adequate information about retirement options.
“And just saying they adhered to the scheme rules is not going to wash. How can it be explained to the court that an employee is in a worse financial position than they would otherwise have been?
“Giving an employee proper advice when they retire is not difficult. In fact, providing full retirement options is easy. Also, with the abolition of the default retirement age, more and more employees are going to want to keep working and stagger their retirement over time. All of this needs advice.”
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