UK - Two-thirds of all employees do not understand the pension schemes being offered by their employers, research from Black Mountain reveals.
The international HR and employee benefits specialist found that despite the high profile of scheme deficits and the drive by the government to increase understanding, only 37% of staff fully understood the pensions made available by employers.
The survey – which polled about 100 employees – also showed that 19% had a distinct “lack of understanding” or “no understanding” of the pension options open to them.
Black Mountain believes this is due to a lack of communication between employer, pension provider and the employee.
Director Tim Evans said: “The results of this research are truly alarming. Even though pensions are a ‘hot topic’ at the moment, firms are still not clearly communicating with their staff.
“We only hope that these results highlight poor staff communications and not that companies are breaking the law by not offering a viable pension scheme to their employees.“
The HR specialist said employees often received complicated and confusing brochures and letters outlining their entitlement, and they were often put under pressure to join schemes within strict deadlines.
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