More than four out of five employees would welcome advice on pensions in the workplace.
Research from pensions risk transfer provider MetLife Assurance Limited shows MetLife Assurance’s nationwide survey showed that when given the option of receiving that advice from either their employer, an independent financial advisor or a Government sponsored approach, IFAs were a strong favourite, chosen by 55 percent of employees surveyed. Only 17 percent viewed their employer as the preferred source of advice, with an even smaller proportion (nine percent) selecting advice from the Government. The remaining 19 percent indicated no interest in receiving advice in the workplace.
Emma Watkins, Director of Business Development at MetLife Assurance Limited said: “This research clearly highlights that employees want help to avoid future retirement income issues. Individuals require simple and clear information about their pension provision to determine what this means for their retirement plans. However, it appears that the most common sources of additional information, the employer and the Government, are not viewed as the most favourable. Whilst many employers provide pension communication and education, there appears to be demand for access to an independent financial adviser when key decisions need to be taken by their workforce.”
MetLife Assurance’s research further outlines the scale of the under-saving challenge – more than two-fifths of adults (43 percent) do not save into any pension with 34 percent saving into company schemes and 16 percent into private pensions. Around seven percent save into both company and private pensions. Emma Watkins adds: “Whilst the introduction of auto-enrolment in October 2012 is designed to encourage more employees to take up valuable pension benefits, the Government is relying on employers to help. However, simply setting up a pension scheme will not be enough. Employees need to understand the levels of saving necessary for a comfortable retirement and the responsibility they will have to take for their own saving.”
