Ensuring employees have the tools to make the right decision about buying an annuity is critical, said Yvonne Braun, head of savings and retirement at the Association of British Insurers (ABI), during an interview with Tynan Barton, features editor at Employee Benefits at the Employee Benefits Pensions and Workplace Savings Summit on 31 January 2013.
She added: “Whatever employers can do in terms of giving employees information, doing workshops, directing them to the Money Advice Service or The Pensions Advisory Service, would be hugely important.
“It is a once-in-a-lifetime decision and it is irreversible, so it is critical that people get it right.”
Braun also called auto-enrolment a generational shift, but she warned it will be gradual. “It will take some time before it is fully there,” she said. “At the moment, in the present economic conditions, the most important thing is that it’s starting, and people are beginning to save towards their retirement income.”