Only a quarter of employers plan to provide decision-making support for employees affected by the changes outlined in March's budget, according to a survey.
Hymans Robertson said three quarters of the employers who took part in one of its recent webinars did not have support for members affected by LTA changes.
In the March budget Chancellor of the Exchequer Jeremy Hunt abolished the pension LTA and increased the annual tax free pension allowance by 50 per cent to £60,000 a year.
The measure was one of several unveiled in the Budget and was aimed at encouraging an estimated 3.5m people of pre-retirement age back into the workforce.
Abolition of the LTA and DC schemes
Two thirds of the firms polled by Hymans said they had a policy in place for impacted employees but only a quarter planned to provide decision-making support to them. This contrasts with around 60 per cent who plan to communicate the changes to workers and review their default communications on the topic.
Susan Waites, partner at Hymans Robertson, said communications were helpful and informative but did not always result in members making the right decisions for their own individual circumstances.
She said: "Some of the decisions potentially influenced by the Chancellor’s changes will be life-changing, such as older professionals choosing or not to stay in work. Other important decisions affected will include how much to save into a pension, whether to re-start saving, or opting for a cash in lieu of a pension.
“So, employers need to realise their responsibilities by giving additional support such as webinars, access to guidance or even financial advice. That way members will be empowered to make the most of the new opportunities such as the increase in the MPAA and the abolition of the Lifetime Allowance.”
“At the same time employers should be making sure that all communications for employees reflect the new changes and that they keep the structure of group life arrangements under review. By doing this, employers will be increasing the chances of member getting the best outcomes they can in retirement.”
In April, following consultation with the pensions industry HMRC later said it would abandon making changes on dealing with death benefits in respect of the lifetime allowance being scrapped.
