Staff unaware of pension reforms due to employers silence

62% of UK employees are not aware of the Government’s recent pension laws due to a communication breakdown between staff and management.

The changes mean that it is now possible for over 55’s to access as much of their defined contributions pension scheme as they choose. A new report launched by Towers Watson found 47% of those asked agreed that this will leave pensioners vulnerable later in life. 42% said the reforms will promote irresponsible spending.

Speaking to HR Grapevine, Michelle Bradshaw, Compensation and Benefits Director at Oracle explains: “I believe the pension reforms were a good move by government - they have provided people with more choice and more flexibility in retirement, to suit their individual circumstances.”

"However, with these benefits has come more responsibility and complexity for the individual to make the right choice. And, I'd argue that this is - in part - the employer's responsibility to ensure that people are aware and educated about their choices. If an employee is unable to make the right choice, or doesn't know what choices to make, then this could affect their levels of stress or anxiety about their financial future.”