Smaller businesses are those least aware of forthcoming stakeholder pensions, according to research ...
Smaller businesses are those least aware of forthcoming stakeholder pensions, according to research by the Co-operative Insurance Society (CIS).
The survey of 150 small businesses, each with between five and 50 employees, found that 76% do not offer any type of pension for their staff and only 1% of respondents named stakeholder when asked to name different types of pension.
Those products that were named included personal pensions and company schemes. Even when prompted, fewer than 30% were aware of stakeholder pensions and more than 50% could not define what the aims of stakeholder pensions were or at who it was aimed. Only 2% could name the proposed launch date of stakeholder.
Those that were aware of stakeholder had heard about it mainly through the national press and television, with only 4% hearing about it through IFAs.
Martin Clarke, general manager for marketing at CIS, said: "We wanted to establish awareness levels among the types of companies which will be most affected. The figures clearly demonstrate the educational and practical hurdles that will have to be overcome if stakeholder pensions are to achieve genuine outreach. There will be undoubted extra burdens and responsibilities for small employers and we remain convinced that face to face advice will be needed to achieve real penetration."
The research conducted is the first part of a series of five interviews the group plans to hold with small businesses in the run up to stakeholder.
The project is intended to help the group gain insight into small business employers' perspective on stakeholder and the key issues facing them.
Responses to the first interview indicated corporate attitude toward stakeholder is not positive, especially towards the lower end of the market, the group stated. More than half of those surveyed said that the launch of stakeholder would create a burden for the company.
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