Nearly three-quarters (72%) of employers do not appreciate the impact of the abolition of the default retirement age (DRA) on their pension offering and cost, according to a survey conducted by Jelf Employee Benefits.
When asked which of the upcoming, or proposed, changes would cause the biggest problems for employers, respondents answered: auto-enrolment (42%); the abolition of the DRA (28%); the proposed merger of income tax and national insurance (21%); the retail distribution review (RDR); and the introduction of the National employment savings trust (Nest) (1%).
Steve Herbert, head of benefits strategy at Jelf Employee Benefits, said: “Auto-enrolment will play a part in raising awareness of pension savings but employers can also help themselves by championing this issue internally by offering better pensions education programmes, encouraging employees to review their investment decisions and savings levels, and increasing their own contributions.
“This remains a hugely sensitive topic but employers who do not face up to the very real possibility of aging employees who cannot afford to retire, may pay the penalty in years to come.”
Read more articles on the default retirement age’s impact on pensions