The Pensions and Lifetime Savings Association (PLSA) has published new guidance to help pension schemes and employers support savers’ financial wellbeing by starting a conversation about their workplace pension.
Launched to coincide with Pensions Awareness Day, ‘An Employer’s Guide to Talking About Workplace Pensions’ is designed to encourage employers to educate their workforce about how their pension scheme works, how they can make the most of employer contributions, and how they can make good decisions to set them up for a more secure future.
With more employers offering more people workplace pensions through the introduction of automatic enrolment, and people now having more choice about how to invest and access their pension, the need for pensions awareness has never been greater.
In many cases, employers and schemes want to provide this support, but are unsure what information they can provide without falling within regulations which govern personal financial advice.
This guide describes the regulatory context, such as the so-called advice/guidance boundary and provides practical examples of conversations that would and wouldn’t fall within the realms of regulated advice.
It also dispels five common myths and assumptions that might be barriers to some employers and schemes providing more support for savers.
Lastly, the guide also features case studies derived from among the PLSA’s membership that show what is possible for schemes and employers to do more for savers.
By helping employers navigate this complex area of regulation, the PLSA hopes to give them confidence to start conversations with savers that will prompt good decisions led by greater understanding, which ultimately lead to better retirement outcomes.
Nigel Peaple, Director of Policy and Advocacy, PLSA said: “With more employers and savers involved in workplace pensions than ever before, schemes and many employers are eager to help improve savers’ understanding of their pension. Our new guide for employers sets out the ground rules, highlight some of the opportunities, and dispels some commonly held misunderstandings.
“There has been innovation in pensions awareness, engagement and support too, with the PLSA creating the very widely used Retirement Living Standards to help savers picture their future. And earlier this Pensions Awareness Week we set out our “Pensions: Five Things to Know” campaign which is aimed at ensuring everyone in the UK understands the basics of pension saving.
“We need to talk more about pensions. We want to dispel the myths that employers can’t talk to their staff about their workplace pension scheme or that giving any help at all would mean they are giving regulated advice. By starting a national conversation about workplace pensions and encouraging everybody to learn a few basics about how their retirement savings work, we believe we can promote better financial wellbeing and help more people achieve a better income in retirement.”