JLT report reveals widespread confusion over personal accounts

The consultant's report found only a 20pc of employers and 13pc of employees felt they sufficiently understood personal accounts, while 74pc of workers surveyed did not know what personal accounts were.

JLT UK Employee Benefits chief executive Duncan Howorth said the findings were "worrying" given how close the industry is to the introduction of personal accounts, and also showed employees were less likely to opt out of personal accounts than employers thought they were.

Of the number of total employers which did not offer pension schemes, 34pc said they thought employees would chose to opt out of the scheme, while only 29pc of employees said they would do so.

Howorth added: "The general lack of awareness by employers and employees is in itself worrying but the fact that employers have incorrect views on employee opinions and employees don't even know how they will be affected is very concerning".

They report also found some degree of ambivalence toward personal accounts, with 40pc of employees "unsure" about how they feel and just over a fifth (22pc) of employers were positive about the scheme.

An over whelming majority (90pc) of employers also said they expected personal accounts to be altered in some way before their introduction, which combined with general concerns over the government's ability to administer such a scheme.

A PADA spokeswoman said: "PADA is still in its early stages of development and we continue to consult on aspects of the scheme.PADA will provide information related to the scheme to employers, employees and third parties. The information will enable employers to choose the scheme for their employees and will support members in their decision making such as fund choice.

"The information provided by PADA will be supported by communication from DWP and TPR on the introduction of auto-enrolment."

She added: "PADA remains committed to working with its stakeholders over the next three years to ensure delivery of the onset of employer duties in 2012."