Employers failing to ‘mention the pension’
19 October 2011
Employers are failing to make their pension provisions clear, as one in three people have accepted a new job without knowing whether it comes with a pension.
The research, from the National Association of Pension Funds (NAPF), found that just one in 12 job adverts makes any mention of the pension provisions on offer.
The Government currently estimates that 14 million people will suffer an inadequate retirement income, which is why the NAPF is urging employers to make pensions a bigger part of the recruitment process.
Commenting, Joanne Segars, NAPF Chief Executive, said:
“Britain is facing a crisis when it comes to saving enough for its retirement. People need to wake up to the fact that some workplace pensions are worth a huge chunk of annual pay.
“Jobseekers need to know whether a pension is on offer, and they need to be aware as early as possible so that they can make an informed decision.
“Employers have got to do more to ‘mention the pension’ and they must be more explicit in disclosing its terms. They should specify the type of pension and the employer contribution, which might be anything from zero to well over 20 per cent of annual salary.”
Auto-enrolment is set to change the face of employer pensions from 2012 onwards, as employers will be required to offer a pension scheme to auto-enrol employees into.
NAPF argues that this will be an opportunity for those employers that offer more than the bare minimum to shine. Ms Segars adds: “Those who are offering pensions above the minimum auto-enrolment requirements have a clear interest in shouting about it to attract the best staff.
“Eight out of ten employees told us that they would be more likely to apply for a job if it offered a good pension.”
The NAPF also suggests that employers offering good pension schemes use the Pension Quality Mark (PQM), which is given to pension schemes that meet strict minimum standards of contribution, communication and governance.