More than eight out of 10 advisers, trustees and employers believe employees do not understand the risk associated with different kinds of pension schemes, research suggests.
HSBC Actuaries and Consultants (HACL) found 88% of professionals thought members were ill equipped to cope with pension risk, however, 92% believed pensions were a key recruitment and retention tool.
HACL released the findings as it launched RetireSure - a package designed to help employers enhance defined contribution pension schemes.
HACL's research showed pensions industry advisers, trustees and employers, overwhelmingly believe that employees cannot manage the risks that are transferred to them when workplace pension provision is switched from defined benefit to DC schemes.
The firm said making the provision of advice-based pension schemes very important when attracting and retaining employees over the long-term.
HACL head of defined contribution Paul Armitage said: "Employers recognise now, more than ever, that a pension scheme is being seen increasingly as a differentiator by employees.
"Providing employees with face-to-face advice, as well as furnishing the scheme with access to the necessary tools to make the best choices on their behalf, is a powerful way for employers to use their pension scheme to attract and retain staff."
He added: "It is not sufficient - especially in a challenging economic environment - to provide 'one size fits all' solutions and we are finding that schemes are gravitating more to an advice-based service."
HACL said employers should use an advice-based approach to get the most of their scheme. It also said ensuring the member maximises the benefits available to them on reaching retirement should be a key goal for any pension scheme.
The survey, which was undertaken in conjunction with the Pensions Management Institute, polled more than 330 advisers, trustees and employers on the implications of the switch from DB to DC.Professional Pensions
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