Pensions - Articles - New research by Xafinity on Freedom & Choice

 The research, which was conducted amongst employers with between 100 to over 2500 pension scheme members representing over 175,000 employees, also found that support offered to members to help with their decision making is restricted. The majority of employers are pointing them towards the provider’s website, plus a referral to Pensionwise (55%), 24% limited to provider’s website; and 9% are also offering adviser support in addition to the provider’s website and Pensionwise referral. Only 12% said they are offering employees comprehensive, multi-channel communication strategy.

 Paul Armitage, Xafinity commented; “It is encouraging to see that employers are facilitating access to Freedom & Choice flexibility, and that sponsors are keen to see their members get a good deal from the products they go on to buy. However, in many cases this is restricted to the at-retirement products and services of their main scheme provider. We know from our research that many of the provider offers are restricted; SIPPs and UFPLS solutions dominate, and these are problematic. Corporate advisers have a role in helping clients source the most effective at-retirement solutions now available. It is good to see that Pensionwise features in their planning, though.”