Employees In The Dark About Company Pension Changes

Many of us work for companies that have their own pension scheme. Usually both the employer and the employee contribute to the fund on a monthly basis. The alternative is that you have your own private pension. There is now, however, a new set of rules which will allow you to be a member of a company pension and also save money in a personal pension at the same time. But it seems that many employers have not informed their employees of the new scheme.

More than a fifth of all companies in the UK have yet to inform their staff about upcoming pensions plan changes. Only a tenth say that they have completed their employee communications.

Over 20 per cent of companies with 50 or more employees (around 8,000 businesses) say that they haven't informed staff of what the changes could mean for them or their savings. Around 3,000 of these added that they were happy for their employees to find out the details either elsewhere or not at all.

The changes, which have been heralded as the greatest pension’s shake-up since the universal system was introduced in 1908, are intended to simplify pensions and increase savings.

"The lack of employee communications is one of the key reasons for the pension crisis," said a spokesman for the retail finance services group which commissioned the research.

"It's always been a challenge for employers to interest staff in pensions. Failing to inform and educate their staff about the pension reforms will result in greater confusion and prevent more employees from participating in company pension schemes."

The find out about your pension options it is a good idea to talk to an independent financial advisor. There are many different schemes available and it is important to make sure you pick the one that is right for your individual circumstances.

If you would like to know more about pensions why not ask AnswerBank Business and Finance.