UK - An independent "education service" that enables members of defined contribution schemes to gauge their future retirement income has been launched by Towers Perrin.
The consultant says its FuturePlan service – which it describes as unique – was created in response to the government’s inertia in tackling the pensions crisis.
Towers Perrin partner Robert Ivey said: “Moving employees from the paternalism of the DB scheme to a DC scheme, without giving them the necessary tools to help them help themselves, is the equivalent of pushing them out of a plane without a parachute.”
Towers Perrin backed up the launch of its service with a MORI-commissioned survey which shows that while 80% of employees would trust an adviser chosen by their employer, only 10% could name an independent financial adviser.
He added: “Employees are either unwilling to pay for advice or don’t trust their advisers, and are likely to fall far short of their expected retirement income.
“Now, more than ever before, the onus is firmly on the employer to ensure employees’ needs are provided for in retirement.”
The FuturePlan service will be sold direct to employers who, in turn, make it freely available to employees. The service incorporates an interactive website which allows employees to predict their retirement income based on their current financial situation.
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