Employers need to ensure that their employees know about major changes to workplace pensions set to be introduced later this year after new figures showed a lack of awareness among the majority of the UK’s workforce.
According to the study by Aviva, more than two thirds of employees have little or no understanding of pension auto-enrolment, which will come into force for many people in October this year.
Under the new rules, employees must be automatically enrolled into a workplace pension scheme – if they are not already in an equivalent scheme – with employers required to contribute to each individual’s pension fund. The scheme is being phased in over the next few years as the Government aims to encourage more people to save for their retirement.
Auto-enrolment will begin in October and while many firms will not have to implement the scheme immediately, it is important that employees are aware of what their options will be.
Employers who have not already done so should start talking about their workforce’s savings and benefits options as soon as possible to ensure that they are prepared for when the changes take effect.