Friday 10th March 2006
UK employees could be left behind by new pension changes, according to a new study.
Prudential has found that around one in five businesses have not told their staff about pension changes and only one in ten businesses has completed their employee communications.
The insurer claims that the lack of knowledge about the changes that will come in on A-Day, April 6th, could worsen the pensions crisis.
Dave Harris, Prudential corporate pensions director, said: "The lack of employee communications is one of the key reasons for the pension crisis.
"Its always been a challenge for employers to interest staff in pensions. Failing to inform and educate their staff about the pension reforms will result in greater confusion and prevent more employees from participating in company pension schemes."
He added: "This will exacerbate the pension crisis and is bad news for employees looking forward to a comfortable retirement."
The new rules are to be the biggest shake-up of pension since 1908 when Lloyd Georges Old Age Pensions Act provided between 1 shilling and 5 shillings a week to people over seventy.
A-Day will bring increased contribution limits, greater flexibility in saving for your pension, higher maximum benefit levels sand a change to minimum retirement age from 2010.
Dave Harris said "The simplification of pensions is aimed to make people more pension-literate and to increase the participation in company pension schemes.
"This will be difficult to achieve if employers dont implement a communications programme" 
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