Good communication will minimise ‘levelling down’ of pensions

Two-thirds (65%) of independent financial advisers (IFAs) believe active promotion of quality pension schemes is necessary to minimise levelling down of corporate pension provision ahead of auto-enrolment in 2012, according to research conducted by Aegon.

The survey Corporate Advice – The Changing Landscape also found 61% of advisers thought generating an increased interest in initiatives like salary sacrifice would minimise levelling down, while 53% thought this could be achieved by seminars and financial education in the workplace.

Neil Davies, head of corporate marketing at Aegon, said: “With the new regulatory environment, the new employer responsibilities offer a genuine opportunity to get millions more people saving for their retirement. There is no doubt employers will need help with these complex rules and regulations through expert advice and worksite education.

“As auto-enrolment approaches, our findings highlight the positive impact that a proactive approach can have on employer and employee engagement in pensions. 

“Employers should be encouraged to set up or maintain their more generous private pension schemes and people need encouragement to remain in these schemes and contribute more than the statutory minimum. We believe successful reform requires a thriving pensions market alongside Nest.”

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