Advice is crucial in pension planning in the workplace, while the debate on low cost pensions is not an issue, claims research from Winterthur Life.
Figures from its worksite marketing programme, on behalf of group clients, suggest following a group presentation, 84% of employees not currently part of a scheme said they were now more likely to join.
Winterthur delivered presentations to group scheme employees between September 2005 and February 2006 and found advice is being seen as a crucial part of pension planning - evidence which conflicts with the view of Lord Turner and the Pensions Commission.
The company says it believes advice and the workplace should be at the heart of pensions reform, revealing not only did the presentations encourage 84% of people to join a scheme, it also found 90% of those currently saving said they would now review their pension.
Figures from the research show this action consisted of 28% planning to review investment choices, 26% planned to review their overall pension planning, while 22% were planning to seek independent advice.
David Thompson, director of distribution at Winterthur Life, says what he found particularly interesting is by providing a comprehensive group presentation explaining how the pension scheme works and the options available to employees, the majority of staff have been encouraged to sign up, while those already with pensions are planning to take action to review their current provision.
In addition, he says Winterthur collected a lot of evidence which clearly stated members want and need advice on their pension, and as Winterthur is “firmly aligned to workplace education and value”, Thompson says it is encouraging presentations make employees want to seek independent advice.
Thompson adds: “Interestingly, at no point during the presentations did the issue of cost arise or affect the outcome of increased take-up of company pensions. This suggests the debate’s obsession with low cost and no advice is misplaced and should provide food for thought for the Department for Work and Pensions before the Government publishes its White Paper on pensions reform in late spring.”
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Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October