More than three-quarters (77%) of UK organisations do not know when they have to begin auto-enrolling their employees into a qualifying pension scheme, according to research by the financial education division of Close Brothers.
The research, which was conducted among 2,000 employers across the UK, found that 12% of organisations have not considered what needs to be changed to respond to the requirements of auto-enrolment.
The pension reforms, which require employers to provide a basic workplace pension scheme to eligible employees, come into force on 1 October 2012 and will be rolled out until 2016.
Jeanette Makings, director of financial education services at Close Brothers, said: “It is essential that employers take an active role in communicating the new pension choices to their employees to make them aware of the need for and benefit of saving more for retirement.
“Auto-enrolment aims to create a UK-wide pensions system for all workers, transforming the savings landscape.
“Workers will be looking to their employer for guidance, which is why introducing a programme of financial education is essential. This way, employers can take an active role in informing employees of the benefits available to them, as well as helping their workers plan for a more secure financial future.”
Read more articles on the pension reforms and auto-enrolment
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