The government has been urged to “apply pressure” on employers to provide more information to their staff about workplace pensions and freedoms options.
Statistics released today by the Department for Work and Pensions show that there has been a 25 percentage point increase in the proportion of companies providing pensions information to workers since 2015, with the total reaching 83 per cent now.
Quilter head of retirement policy Jon Greer says that while the growth is “encouraging”, and likely to be driven by auto-enrolment, the “government need to continue to apply pressure and give support to employers so that number edges closer to 100 per cent”.
There has also been a near 20 percentage point increase in the number of employers providing workers with information about flexible pension withdrawals.
But Greer notes that, overall, less that 60 per cent of employers are still providing information on the freedoms.
Greer says: “Pension freedoms requires engagement and if people do not have any awareness of the options they will have available to them, it’s impossible for them to plan appropriately. In fact people may be more willing to part with their day to day to income and put it into their pensions if they know there is flexibility on when and how they withdraw that money.”