Almost half of employers think the Department for Work and Pensions is not providing enough information on the forthcoming 2012 pension reforms.
The Employer and Employee Personal Accounts Research by JLT Benefit Solutions (JLT) in association with YouGov surveyed 523 organisations’ attitudes to personal accounts. It found that 47% of respondents felt not enough information was available.
In addition, 46% of them expect the extra contributions needed to meet the minimum 3% employer contribution to be a considerable financial burden. And 19% thought personal accounts would not be beneficial to staff in terms of helping them save for retirement. A further 28% did not know whether personal accounts would be beneficial.
More than a quarter (26%) said they felt negative about personal accounts, and 25% thought their employees felt negative.
Andy Savage, JLT’s lead consultant on personal accounts, said: “Many employers, particularly smaller ones, are still very much in the dark, but unless legislation now changes before 2012, they will have to get up to speed because they must be ready to join in when instructed to do so.”
Click here for more articles on occupational pensions