Published by the PLSA, An Employer’s Guide to Talking About Workplace Pensions aims to support employers in educating their employees about how their pension scheme works, how they can make the most of employer contributions, and how they can make good decisions for a more secure future.
Announcing the launch of the guidance, the PLSA said that many employers and schemes are keen to offer this support but are unsure what information they can provide without it constituting financial advice. The guide therefore provides background information on the current legal and regulatory regime, describes the ‘advice/guidance boundary’ and provides practical examples of conversations that would and would not fall within the realms of regulated advice.
With more savers in workplace pensions than ever before through auto-enrolment, and people now having more choice about how to invest and access their pension, the need for pension awareness has never been greater. Yet recent research from the PLSA (covered in our separate article) identified that UK savers remained ‘in the dark’ about pension saving basics. The PLSA believes this shows that we need to talk more about pensions and wants to dispel any myths that might prevent employers talking to their staff about their workplace scheme.
At PS Aspire we believe educating individuals on pension saving and financial wellbeing is essential. We would encourage every employer to do so and if you would like assistance from pension experts that can explain pension issues without the use of jargon, we would be happy to help you.