More than one in three employees would welcome support from employers

But just one in five have been contacted by employers about changes to pension laws, Portus Consulting research shows. 

More than one in three employees would welcome guidance on retirement saving ahead of the launch of the UK’s pension revolution in April, new research(1)from award-winning employee benefits consultancy Portus Consulting shows.

Its nationwide study found 36 percent of workers want their employers to provide support on retirement planning rising to nearly half (46 percent) among those aged between 35 and 44.

Just 21 percent of employees say their employer has contacted them about the changes to pension laws with less than three months to go to the start of new rules enabling retirement savers to take pension money from age 55 whenever and wherever they want subject only to tax rules. The new rules offer greater flexibility for workers over their pension funds but potentially make decisions more complex – Portus Consulting’s research shows just 40 percent of employees believe they are saving enough for retirement either into pensions or alternatives such as ISAs or property.

Awareness of the new rules is relatively high with 64 percent of employees saying they have heard of the changes rising to 87 percent among those aged 55 to 64 who will be the first to take advantage of the new legislation. Stuart Gray, Chairman of Portus Consulting said: “Employers are seen as a valued source of education and support by substantial numbers of employees and there appears to be strong demand for guidance on retirement planning from workers.“The changes to pension laws due in April will mean the biggest change to retirement saving in most people’s lifetime and it is inevitable that there will be confusion and potentially problems. 

“However there is also a real opportunity for employers to underline their commitment to staff by taking a wider role in providing support on retirement planning. Clearly that can be challenging for employers but there will be real benefit from providing help.”

The research found around one in five employees already receives support on retirement planning and retirement decision making from their employer – and value the guidance that is provided. However 72 percent of employees say they have not been contacted by their employer with any information about the changes to pension laws while another 7 percent say they do not know whether they have been contacted. The research found 11 percent of employees are not saving anything for retirement – women are more likely to not be saving at 13 percent compared with 9 percent among male workers.