On the go: Some employers are still sticking their heads in the sand when it comes to pensions reforms. Only 59 per cent have alerted their employees to pension freedoms, according to the Employer Engagement Survey 2018 published by the Department for Work and Pensions in March 2019.
Shockingly, information from employers to their workers on pensions, despite auto-enrolment, is not universally provided. Despite encouraging growth, some laggards remain, with only 83 per cent of employers keeping their workers in the picture on workplace pensions (up 25 per cent from 58 per cent in 2015-16).
Jon Greer, head of retirement policy at Quilter, welcomed the improving trends, but said: “The government needs to continue to apply pressure and give support to employers so that number edges closer to 100 per cent. “
He added: “Pension freedoms require engagement and if people do not have any awareness of the options they will have available to them, it’s impossible for them to plan appropriately. In fact people may be more willing to part with their day-to-day to income and put it into their pensions if they know there is flexibility on when and how they withdraw that money.”
The research also shows that nearly 80 per cent of employers have employees over the age of 50, and almost 30 per cent have a majority of older workers.
Shifts towards flexible working arrangements in later life are still relatively low, with just 6 per cent of employers saying they received requests for changing working patterns from employees approaching retirement, but encouragingly the vast majority have said they will accept requests.
