Tags: Pensions

Emma Harvey: I’m entitled to a workplace pension? 1 in 3 Brits still have no idea

Despite the recent £8m TV campaign from the DWP, research by online pension adviser, Wealth Wizards, has shown that by the end of 2015, an alarming thirty-eight per cent of working Britain’s still do not know what auto-enrolment is or realise that they are entitled to a workplace pension.

Despite the introduction of pension freedoms bringing an increased need for advice, research from online pension adviser Wealth Wizards has revealed that the majority of Brits avoid seeking pension advice. More than half believe that pension advice will be too expensive and an astounding twenty-nine per cent of Brits don’t seek professional advice as they find discussing their finances and pension provision too embarrassing.

Out of nearly 2,000 respondents in a new survey conducted by loan company Provident, 19 percent admitted that they struggle financially within two weeks of getting paid and 40 percent don’t save any money on a monthly basis. With more jobs paying employees the National Minimum Wage, 35 percent of respondents said that they haven’t had a pay rise in two years or longer, despite the improving economic conditions.

The Chancellor, George Osborne, has set the apprenticeships levy, to be launched in April 2017,  at 0.5 percent of an employer pay bill in his Spending Review. The levy will only be imposed on firms with a pay roll that amounts to more than £3 million a year.

Andrew Firth: The challenges of employee access to financial advice

The introduction of auto-enrolment and ‘pension freedom’ reforms have meant that pensions and retirement choices have never been wider for employees – something that is undoubtedly to be applauded.  However, for HR, these pension changes and the implications for employees presents one of the biggest challenges to date The  increased choice and flexibility means that people need more help than ever, and there is a real risk that some do not engage at all because of the complexity and jargon that comes with pensions.