The Department for Work and Pensions has announced plans to help employers make employees take pensions seriously. Apparently, if employers do not make pension contributions on behalf of their employees, they will be expected to pay for face-to-face advice for them. There will be a 12-month pilot exercise put in place with three options tested. Each option is designed to help employers get pension information across to employees. The three options include an employer advice pack, a group session offering non-regulated advice and a face-to-face option for an employee and adviser.
Our View:
Employers should not be forced to pay for advice for employees. If employees want pensions advice, there are various ways to obtain it, with or without cost. Whilst employers do have a duty to promote pension savings, the big job of taking pensions seriously lies with the employees themselves. This is a job for the Government, basically overhauling the State system.