Two in five employers expect the introduction of the Lifetime ISA to cause confusion among employees saving towards retirement and 16% expect the new financial product will reduce employee contributions to workplace pensions and employee share schemes. However, despite these expected affects, only 20% of the 900 UK employers in the Close Brothers Business Barometer survey are planning financial education sessions around the new pension and savings options open to employees.
According to Close Brothers, this is likely to result in further confusion and lower take-up of employer-sponsored financial planning options. Nearly half of employers taking part in the survey are worried about employees’ poor financial wellbeing.
Jeanette Makings, head of financial education, said:
‘In our current economic climate, with a rising state pension age and house prices remaining out of reach for many, any initiatives that encourage a savings plan should be welcomed . . . Savings schemes are not a “one size fits all” and employers have a pivotal role in ensuring staff are equipped with the tools and support to improve their understanding and make the best savings choices for them whatever their age, career stage and personal circumstances.’