UK - Employees' pensions awareness and understanding is "woefully low", claims Invesco Pensions chief executive David Butcher.
The claim was made in response to research from the Department for Work and Pensions which found many employees find scheme information confusing.
Butcher called for a comprehensive programme of education to raise awareness and understanding – and to ensure that people realise that it is up to them to save for retirement.
He warned: “The level of awareness and understanding of pensions in the UK is woefully low.
“It would be a real tragedy if we woke up in 10 years’ time to find that the UK population was as unaware and uninformed about pensions and their benefits as it is today.”
The DWP research involved presenting scheme members with a fictitious scheme’s negative funding position following a full valuation and an outline of what would happen if the scheme were to close with funding at its current level.
Several members commented that the research presented to them was clearer than material that they had been sent on their own scheme, while others said that they would be tempted to leave the scheme as a consequence of seeing their scheme’s true funding position.
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