Chief Executive of the National Association of Pension Funds
Automatic Enrolment has reversed years of decline in pensions saving and now more and more people are saving into a workplace pension scheme.
The recent Pension Freedom reforms introduced in April will affect many people, and radically change the options savers aged 55 and over have about how they can access their retirement savings. Savers tell us they are positive about these reforms but they are also aware of the challenges they face when managing their savings through the twenty or thirty years they may be retired.
With so much at stake it’s vital savers think hard about what to do with their savings and consider seeking guidance or advice. Workplace schemes must act in the best interests of scheme members and play a big role in helping their members find good advice and guidance on what to do with their pension savings.
The recent pension reforms mean that when members have to decide what to do with their pension savings their scheme must signpost them to Pension Wise. And in some cases there may be a legal requirement for the scheme member to take professional financial advice, for example if the scheme member wants to transfer out of a defined benefit scheme.
But even if professional advice isn’t a legal requirement it’s important that savers are informed about their options. To help, NAPF has partnered with a financial education provider to offer seminars helping people understand their options at retirement. Employers can also tailor these seminars to offer bespoke information for their employees – and there’s a discount for NAPF members. Speak to your HR department or employer about what is available. Workplace pension scheme are a great way to save for retirement and it’s important people know how to make the most of their savings.