With less than a week to go before reforms are introduced allowing savers greater flexibility in how they access their pension fund at retirement, over half (56%) of small and medium sized employers admit they have never heard of them or the government’s new
Pension Wise guidance service, according to new research* from workplace pensions provider NOW: Pensions.
Of the 400 SMEs surveyed, only a quarter (27%) say they are aware of Pension Wise with a slightly higher percentage (39%) claiming they are aware of the April reforms.
The research comes as government enters its pre-election or “purdah” period when it is forbidden from spending public money on promoting initiatives deemed to be linked to a particular political party. As a result, all publicity around Pension Wise will be scaled back until after the election.
In the general election guidance published by the Cabinet Office yesterday, it states: “New advertising campaigns will in general be postponed and running campaigns closed.”
Looking ahead, over a third of employers (33%) are concerned that the new government will significantly alter workplace pensions legislation.
Morten Nilsson CEO of NOW: Pensions said:
“It’s deeply concerning to see such low levels of awareness of these huge pension reforms amongst small and medium sized firms. Many employees will naturally turn to their employers for information on their pension as they near retirement and a large proportion are at risk of being given out of date or inaccurate information.
“For the government to find itself mute during such a critical phase in the roll out of these reforms would be laughable if it wasn’t so serious. Government, regulators and providers all need to do as much as they can to raise awareness of these changes to make sure savers are being offered the right support to take advantage of their options.”
|
