A survey from investment firm Close Asset Management found 61% of employers admit to this serious gap in their knowledge, which could significantly affect their staff's retirement plans.
Pensions auto-enrolment, into a qualifying pension scheme - widely known as NEST (National Employment Saving Trust) - has been in consultation since July 2007. It proposes several developments to what were originally known as personal accounts. For larger companies, the introduction of NEST will start from 2012, meaning employers have to start thinking about the impact it may have on their organisation now.
Of the 39% of employers which are aware of the impending changes, two-thirds (65%) stated that they would be providing extra training to help their staff understand the implications of an auto-enrolment pension scheme. However, this suggests that the remaining third intend to leave their workers with no further training on the topic.
Of those not providing any training on auto-enrolment, 40% of employers believe their workers will already receive the information in another way (such as a brochure), so the employer will not need to provide anything extra. A further 18% believe employees will already understand the issues, but 14% confess that cost is the major barrier to providing this service.
Jeanette Makings, director of financial education services at Close Asset Management, said: "It is concerning to discover the low level of awareness around auto-enrolment, especially this far into the planning process of NEST and just round the corner from implementation. Employers will want to confirm how these changes will affect them and their employees, and they should act now to make sure they are prepared by 2012.
"Whenever there is a change to workplace legislation, there is a period of adjustment for both employer and employee. Workers are looking to their employers for advice and guidance, and the research shows that there is a real opportunity here for businesses to foster trust and engage with their staff."
The research was conducted online by OnePoll for Close Asset Management between 28 April - 9 May 2011 among 2,000 employers across the UK.
