Pension reforms have encouraged employees of all ages to take an interest in their savings. Madeleine MacPhee reports
There has been a significant increase in younger people seeking advice and information about their pensions following the recent reforms, according to research from Close Brothers Asset Management.
A third of employers have seen an increase in staff asking for information about their pensions and how they can learn about saving plans to increase them – even if they are not near retirement age.
The study found that 37% of employers say the reforms have encouraged them to educate employees more about their finances in general, as opposed to just informing them about their pensions. One in ten (10%) are confident that they are already doing this, while 14% are encouraging staff to external resources like Pensions Wise.
Nearly half (42%) of employers are also increasing staff engagement with their finances through practical exercises. Encouragingly, only 12% of employers running education programmes limited them to those over the age of 55.
Jeanette Makings, head of financial education services at Close Brothers, said: “Already the pension reforms are not just encouraging those approaching retirement to think about their financial plans, but they are also turning the heads of the younger generation. And just as encouraging is that a growing number of employers have identified the change as an opportunity to introduce or revisit their approach to financial education to support all staff in improving financial wellbeing and planning for retirement.
“It is important for employers to remember the pivotal role they can play in the education of staff throughout their careers: retirement planning doesn’t just happen at retirement and the earlier people start using their workplace pensions and other benefits to improve their financial wellbeing, the better.
“Employee financial wellbeing doesn’t just benefit individuals, it is crucial to business success, boosting engagement, retention and productivity.”