Employers need 'more guidance on pensions'

Employers need more guidance when it comes to dealing with worker pensions, one industry figure has said.

A survey from the Chartered Institute of Personnel and Development (CIPD) has revealed that more than more than half (54 per cent) of employees are not members of a workplace pension.

Workers in small firms are the most likely to be affected - just under two-thirds (65 per cent) are not signed up, compared to only 12 per cent in the public sector.

Commenting on the findings, CIPD reward advisor Charles Cotton said: "Firms are facing a huge challenge in light of 2012 auto-enrolment.

"It is crucial that the government supports employers' efforts to communicate to employees the implications of these changes. If not, we will continue to sleepwalk into a pensions' crisis."

Bosses could find that it is important to motivate staff to join pensions by regularly updating them as to the value of their pension pots.

Published on: February 3, 2011

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