EXCLUSIVE: More than half (56%) of employer respondents believe uncertainty about how to make the best decisions when accessing pension benefits is an area of concern for employees, according to research by Employee Benefits and Close Brothers.
While this continues to top the list of retirement concerns affecting respondents’ workforces, it has fallen slightly since 2014, when 60% of respondents cited uncertainty about how to make the best decisions as a key concern.
The Employee Benefits/Close Brothers Pensions research 2016, which surveyed 250 employer respondents, also found that the percentage of respondents that identify employee uncertainty about what to do with their pension savings has also fallen, dropping to 41% in 2016 from 52% in 2014.
Similarly, a fifth (20%) see uncertainty about how to save for retirement as a cause for concern among staff, compared to more than a quarter (26%) in 2014. It may be that employers’ efforts to communicate and educate staff about pension saving following the introduction of the pension flexibilities in April 2015, in addition to increased pensions media coverage around the reforms, has helped to enhance employees’ awareness about their options.
Despite this, there has been little improvement in the level of concern about financial security in retirement, with 52% of respondents citing this as a worry in 2014 and 53% doing so in 2016. This could perhaps be indicative of the wider economic and political uncertainty currently facing employers and employees.
Tune in to EB TV at 11am on 29 November for Employee Benefits Wired, where an expert panel will discuss key findings from the research. Tweet your questions for the panel using #EBWired.