A poll by WEALTH at work has found that only 18% of employers believe their employees know how much to save.
Following the recent change in pensions legislation, there has been a significant impact on employees and their retirement income needs. A recent poll by WEALTH at work found that only 18% of respondents believe that their employees know how much they need to save in order to get a good retirement income.
The poll asked: ‘Do your employees know how much they should be saving in to their pension to get a good retirement income?’ Over half (54%) of respondents said no, whilst 28% said they don’t know. A previous study by WEALTH at work also looked at whether there would now be an increased requirement for specialist advice at retirement – and 67% of respondents said yes.
Jonathan Watts-Lay, director at WEALTH at work, commented on the shocking figures. “It is a worrying problem. Employees simply don’t understand how much they should be saving for retirement. It could lead to many individuals realising that they have not saved enough to meet their expectations in retirement, at a time when it’s too late to do anything about it.”
“The findings indicate to me that many employees are not getting the financial support they need to enable them to make informed decisions around their retirement. I believe that it’s in the employer’s best interest to support employees in understanding what they need to do to achieve a secure retirement income. The best way to do this is through the provision of financial education followed by advice, ideally provided via the workplace.”
If your company currently offers any financial education for employees, why not enter Reward’s very own Very Important Benefit awards (VIBs) and have the chance to win? Following a massive success, they are back for a second year running! Enter as many categories as you like for free, from ‘Best financial education strategy’ to ‘Best financial education provider.’ For full details on how to enter, CLICK HERE.
WEALTH at work is blogging about the key areas of employer consideration when helping employees through retirement in Reward's financial education hub.
The hub examines the changes in pensions and looks at how you can help your employees with financial education across all their savings. CLICK HERE to access the hub
For further information about WEALTH at work, please CLICK HERE