Financial education around retirement to become more widespread

About one-third (36%) of employers expect the provision of financial education and support at retirement to become more widespread, according to research by Close Brothers Asset Management.

Currently, less than 50% of the 200 employers surveyed offer specific 'at retirement' support, but this is likely to rise in response to the government’s pensions reforms.

In the 2014 Budget, chancellor George Osborne announced plans to give people more freedom to access their savings. The changes come into force from April 2015.

According to Close Brothers’ research, the changes announced in the Budget have already caused many employers to adapt the financial education support they offer.

More than a quarter (27%) of employers will be referring employees to the government’s guidance scheme, while 15% have incorporated that retirement guidance into their pension communications.

A further 11% have introduced financial education for all staff, with another 10% introducing this specifically for staff approaching retirement.

Nearly half (49%) of employers said offering this financial education and support is central to their employee value proposition, with another 43% saying it aids engagement and 26% believing it helps with succession planning.

Jeanette Makings, director of financial education services at Close Brothers, said: “These increased freedoms and choices available to employees approaching retirement have focused employers on the need to review the level of support they provide.

“We have already seen many businesses spurred to update their offering, and as April approaches we expect this number is only going to increase.”