A Survey by Hay Group has found 50% of employers are concerned about their employees being unable to afford retirement.
Auto-enrolment education was also highlighted as an area for improvement, as only 27% of employers said the communications their staff received was to a standard considered to be “excellent”.
The research was compiled from the responses of 252 employees. It was conducted in response to a Freedom of Information request where government figures revealed only 45% of new pensioners are to be entitled to the new full, flat-rate state pension during its first five years.
Better pension guidance required
The survey revealed that 40% of employers are looking at educating their employees in financial education during the coming year, including preparation for auto-enrolment.
Nathan Long, head of corporate pension at Hargreaves Lansdown said the results show that lots of employers “recognise auto-enrolment has not gone far enough” and subsequently many are looking to improve workplace education.
One in five companies said they would offer better guidance if they had a second chance at preparing their staff for its introduction.
To be comfortable in later life, the government suggests auto-enrolment will require minimum contributions of 8% by 2018, while Hargreaves Lansdown says a minimum rate of 12% is needed.
Financial clarity is vital if staff, especially the older generation, are to be in the position to make informed decisions on their future.
Speak to Portfolio Payroll
Initially, payroll departments were concerned with the implementation and administration of the new auto-enrolment legislation, yet communication and education is now a key focus.
Payroll departments need to be in a position to offer their employees sufficient financial assistance and to do this they need to employ the right candidates so they can function to their potential.
Contact us on 020 7247 2882 or email firstname.lastname@example.org to speak to a member of our team.