Employers fear backlash over pension rules
UK EMPLOYERS are facing a backlash from their staff when new pension rules come into force on 6 April.
According to research from consultancy firm Hymans Robertson, 48 per cent of HR directors fear that their workforce will hold them responsible if employees make poor decisions about their pensions.
Only 39 per cent feel that they should pay for employees’ financial advice, while 41 per cent believe their workers will be willing to pay for advice themselves.
Paul Waters, partner at Hymans Robertson, said: “For the pension freedoms to be a success there needs to be better guidance in place, both pre- and at-retirement, to ensure people don’t run out of money. Greater support is needed to help people make the right choices in the face of much more complexity. Low cost online tools definitely have a role to play.”
Waters added that online tools, which almost half of the HR directors surveyed said they supported, were the ideal way to support employees facing decisions about pensions and predicted that more companies will set up online guidance for staff in the future.