More staff are seeking pensions advice from employers

Over a third (37%) of employers believe that the pension freedoms have encouraged them to play a greater role in financially educating their employees.

Jeanette Makings

The study from Close Brothers Asset Management, which surveyed 685 employers, also found that 33% of respondents have seen an increase in staff seeking advice on their pension savings well before retirement age.

The research also found:

  • One in 10 (10%) are confident they already have robust enough financial education programmes in place.
  • 14% of respondents are directing their staff towards external resources such as financial advisers or Pension Wise. 
  • 42% of those surveyed are planning more financial engagement exercises with their employees. Of these, just 12% are limiting this to employees aged over 55.

Jeanette Makings (pictured), head of financial education services at Close Brothers, said: “This is better news than could have been hoped for. Already, just three months in, the pension reforms are not just encouraging those approaching retirement to think about their financial plans, but they are also turning the heads of the younger generation.

“And just as encouraging is that a growing number of employers have identified the change as an opportunity to introduce or revisit their approach to financial education to support all staff in improving financial wellbeing and planning for retirement.

“It is important for employers to remember the pivotal role they can play in the education of staff throughout their careers: retirement planning doesn’t just happen at retirement and the earlier people start using their workplace pensions and other benefits to improve their financial wellbeing, the better. 

“The research is clear that while many have already taken positive steps, there is more that can be done. Employee financial wellbeing doesn’t just benefit individuals, it is crucial to business success, boosting engagement, retention and productivity.”