Many people only seek human resource or accounting advice about pension savings right before they retire. While this is the norm, it isn’t necessarily the best-case scenario. Human resource experts explain that people should really seek out pension guidance throughout their entire working career.
Currently, an independent third-party organisation is offering free guidance that will help people approaching retirement make the right choices, but this isn’t enough. This is the message Zurich tried to convey in its submission to the Government’s consultation on the pension changes announced in the Budget.
In the submission, the insurer is asking that the Government actually enable employers to offer their workers guidance on saving for their retirement. If the employer were offering this kind of guidance for free, it is believed that more workers would take advantage of pension programmes and/or get involved in saving for their retirement at a much earlier age.
This type of workplace guidance would allow workers to understand what level of savings they will need in their old age and even what kind of savings account will be best for them.
Unfortunately, there may also be some negatives associated with offering advice in the workplace. If employers were to offer pension guidance, HR professionals could be overwhelmed with the fear of a potential lawsuit from a dissatisfied employee. If the UK were to set up safe harbours like the ones set up in the US, they may be protected from litigation as long as designated standards are met.