96% believe pension flexibilities create need for financial education

Some 96% of employers think that the new pension flexibilities creates a need for more financial education in the workplace, according to research by Jelf Employee Benefits. 


Its research among 250 employers also found that nearly three quarters (73%) believe workplace financial education should be employer funded.

Of this 73%, more than half (52%) of respondents believe that financial education should be entirely employer funded, bualmost a quarter (21%) believe that support should be funded on a case-by-case basis.

The pension reforms will come into force in April and allow defined contribution (DC) scheme members flexibility with how they take their pension.

Jo Thresher, head of money at work at Jelf Employee Benefits, said: “Typically, only a small percentage of employees have been educated in financial matters in the past, and yet a lot of employer communications assume a certain level of knowledge about pensions, protection and other products.

“Offering financial education means that employees will be better placed to understand the messages employers are trying to convey, and therefore more likely to engage.

“We don’t agree with the sentiment that financial education should be funded on a case-by-case basis, however we would advocate that the content and delivery should be appropriate to the individual to ensure a successful outcome for both the employer and employee.”