Pension scheme members still not receiving adequate retirement planning guidance
As more employees hit retirement age and are facing the choices they now have in their hands, many are still finding that their pension pots are not meeting their expectations.
According to research from employee benefits consultancy Portus, more than one in five (21%) employee scheme members – around a staggering 2.3 million employees – are disappointed with their retirement savings’ performance over the past two years.
These concerns are reportedly causing employees to disengage from retirement savings, with around a fifth not joining schemes.
While the government has remained positive about low opt-out rates, the research suggests that employees need increased support and guidance on their retirement saving options from employers or advisers.
Just a quarter receive guidance or advice on retirement planning at work, while 27% say they would welcome guidance – and a third (33%) say that they would be willing to find and pay for independent financial advice.
Portus Consulting’s commercial director Steve Watson says: “Action to tackle the UK’s problem with retirement saving including workplace auto-enrolment is definitely working with pension scheme membership at an all-time high.
“But the missing link is that employees are being left to their own devices and significant numbers are disappointed with pension savings while others are being deterred from even starting to save.
“Employers can play a role in helping to provide guidance on long-term retirement planning but clearly need support in delivering it as the costs can deter employees as well as employers.”
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