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The Actuary The magazine of the Institute & Faculty of Actuaries
Wednesday 26 February 2020

Only 21% employees disappointed with pension performance, but many lack guidance

Research from employee benefits consultancy Portus has found that only 21% of company pension scheme members are disappointed with the performance of their retirement savings.

Confused employee
Only 26% of employees have received guidance on retirement planning @Shutterstock

But only 26% said they had received guidance on retirement planning at work – 11% through regular one-to-one meetings with advisers and 15% by online advice accessed through their employer.

Around 27% of workers would welcome guidance from their employer on retirement planning while 33% would be willing to source and pay for independent financial advice.

Portus also found about one-fifth of employees had not joined company schemes because of worries about how their money is invested.

Its consulting commercial director Steve Watson said: “Action to tackle the UK’s problem with retirement saving including workplace auto-enrolment is definitely working with pension scheme membership at an all-time high.

“But the missing link is that employees are being left to their own devices and significant numbers are disappointed with pension savings while others are being deterred from even starting to save.”

He said employers could provide guidance on long-term retirement planning “but clearly need support in delivering it as the costs can deter employees as well as employers”.