Tue, 3 Jul 2007

'Champions' asked to ward off pensions crisis

Employees will receive education on financial planning and preparing for retirement
British workers are to be given guidance on financing their retirement and pensions following the launch of a new Government-backed initiative.

Endorsed by minister of state for pensions reform James Purnell and the Trade Union Congress (TUC) it hopes to arm businesses with tools which will enable trained colleagues to offer staff information and advice that they may otherwise not bother to seek.

This follows research which found that two thirds of UK workers would take a cut in their salary if it meant they were assured of having a workplace pension. The survey, carried out for the National Association for Pension Funds (NAPF) also revealed that 75% view workplace pensions as an important part of their professional arrangement.

Under the new initiative, organisations can nominate ‘champions’ from the workplace who will attend a one-day course teaching them to convey basic pension advice to their colleagues. The training will show them how to gather more specific information, such as forecasting pensions entitlement and providing information on how users can improve their pension’s position using an online support service, the ‘Pension Doctor’.

Natascha Engel, Labour MP and a member of the work and pensions select committee, told Payroll World: ‘The media continuously report that we are in the middle of a pensions crisis; it’s all terribly negative. It undermines the good work the Government is doing. This scheme will start to rebuild that trust.

‘Training a colleague who has at least basic knowledge is far better than expecting people to visit an independent adviser,’ she added.

During the launch, Mr Purnell explained why many people are put off getting advice: ‘They do not know where to go for advice and information about their pension, or are worried about finding it difficult or intimidating. Workplace initiatives are one way to overcome these barriers.’

For more information on the Pensions Champion Service see: www.pensionschampions.org.uk