17% are unsure about pension freedoms

JMakings 430Around a fifth (17%) of respondents believe that their employees are still confused about the pension freedoms, according to research by Close Brothers Asset Management.

The Close Brothers Business Barometer, which surveyed 900 UK employers, also found that 21% believe their staff have a good understanding of the flexibilities and a third (33%) believe their employees have a limited understanding of them.

The study also found that 14% of respondents believe their staff are using the internet to improve understanding around the pension reforms, and 12% are talking to family and friends, compared to 12% and 10% three months ago, respectively.

Jeanette Makings (pictured), head of financial education services at Close Brothers Asset Management, said: “There is clearly still a lot to be achieved when it comes to ensuring employees are well informed about the pension reforms and the impact on their financial decisions.

“There is an encouraging number of organisations who feel their workforce has a good understanding of the choices they need to make, but there are still many who remain confused or who only have ‘limited knowledge’ and that is a concern.”