Government launches pensions information pilot
A new pilot project to provide better pensions information to employees and employers has been launched by the Work and Pensions Secretary.
Around 100 companies will receive the pack, which contains information on state and occupational pensions as well as answers to commonly asked questions.
The Government will be assessing whether employees make changes to their financial arrangements as a result of receiving pensions information and advice.
Andrew Smith described the new pack as “ground breaking”, saying: “We want to make it easier for employers to support their employees in making retirement choices.
“Many employers, especially smaller employers, are unsure about what they can and cannot say when giving information on their workplace scheme. This new Pensions Information Pack is designed to help them with this so that employees get the vital information they need on how best to plan for retirement.”
“Over three million people are not saving enough for their retirement. We want to deliver a step-change in people’s attitudes towards pension provision. Enabling people to make informed choices in the workplace is a key way in which we can achieve this. By working closely in partnership with both industry and employers we are tackling the issue at its root.”
Mr Smith said that all employees in the future should have access to a pension scheme or advice on pensions in the workplace.
The head of pensions and savings at the Association of British Insurers (ABI), Joanne Segars, who led the consortium of stakeholders that developed the pack, said that the pack showed the benefit sof collaboration between the private sector and Government.
Stressing the benefits of pensions advice, Ms Segars said: “ABI research has shown that employees are nearly twice as likely to engage in long term saving if they receive help and information from their employer.
“The Employers Pension pack will help to give employers the practical help that is needed.”
Financial Secretary Ruth Kelly, who was also speaking at the launch, said: “Informed choice is an essential part of the Government’s strategy, reaffirming the essential partnership in pensions between employers, employees, providers and the Government. It builds on the work we are doing to increase protection through the Pensions Bill and the simplification of the pensions tax system.”
