From the blog: The Work and Pensions Committee has rightly criticised Pension Wise this week for providing a service that is too impersonal and limited in scope.
The situation emphasises the responsibility of employers in providing more holistic, ongoing retirement support.
The problem is many employers have yet to respond to the new pension freedoms – partly due to the speed with which the government brought them in, but also because many have believed the government's claims that Pension Wise is already giving people the support they need.
It confirms what many have already observed: that it takes more than a few informational web pages and a brief conversation to engage Pension Wise's audience and help them through the maze of cash and pension choices at retirement.
But engaging people to provide for their retirement starts well before 50 – the age at which Pension Wise offers its guidance.
The fact is many people will reach that age without adequate pension savings. So supporting the over 50s with their choice of cash vs flexible income vs a guaranteed income isn’t, in most cases, all that helpful – and certainly too late for many.
The situation emphasises the responsibility of employers in providing more holistic, ongoing retirement support; it is they who are best placed and trusted to help employees plan and make sensible decisions about what to save and when
Vested interest
The situation emphasises the responsibility of employers in providing more holistic, ongoing retirement support; it is they who are best placed and trusted to help employees plan and make sensible decisions about what to save and when and, ultimately, how they might best use their savings at retirement.
The problem is many employers have yet to respond to the new pension freedoms – partly due to the speed with which the government brought them in, but also because many have believed the government's claims that Pension Wise is already giving people the support they need.
It would be a big mistake for employers to opt out of their role to help employees through the final hurdle before retirement.
Employers already have a vested interest in the well-being of their employees into retirement; it’s why they have in their masses invested billions in providing pensions.
With a little more planning and investment in online calculators, personalised data and advice, their efforts will have a considerable impact in making this important benefit even more effective – especially in the confusing landscape of pension saving and spending choices that employees now face.
Andy Partridge is a communication consultant at Like Minds
