Aon claims Pension Information Pack falls short of the mark

The
Government’s new Pensions Information Pack does not go far enough in
communicating solutions for saving for retirement, according to Aon Consulting.

The
Pensions Information Pack was launched on Tuesday. It will be distributed to
the employees of up to 100 companies as part of a pilot study designed to find
out whether staff make changes to their financial arrangements as a result of
receiving pensions information and advice.

The
pack includes information on the state pension system, occupational pensions,
useful sources of pension information, and a section answering FAQs (frequently
asked questions).

However,
Paul McGlone, principal and actuary at Aon, said the real issue for the
Government and the working population was not pensions, but how people would
finance themselves in old age.

"Although
pensions are one option, retirement income for some individuals could equally
mean ISAs, property, inheritance, or state pensions,” he said.

“Retirement
saving will vary as different people have their own needs and best ways of
dealing with them.  A pension scheme may
be a good savings vehicle for many, but the Government needs to encourage
people to start looking at wider forms of retirement saving, and take action to
improve on current savings rates in the UK,” said McGlone.

Five
pension providers and six independent financial advisers (IFAs) have also
signed up to the pilot, and are offering their services free of charge.
Providers will go into workplaces, give presentations and take part in
information sessions, while IFAs will be able to give financial advice directly
to employees.

By Michael Millar

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