Pension woes

Over a half of employees worry they’re not not squirrelling away enough cash for when they’re old and grey, according to research from the Chartered Institute of Personnel and Development (CIPD).

A survey published by the CIPD shows that most employees are not members of a private pension scheme.

This may change after reforms to auto-enrolment pensions take effect in 2012

The reforms will introduce of a minimum pension for minimum wage, forcing businesses to take fiscal responsibility for employees in the longer term.

The research highlights how little some employees know about their pensions. A fifth of those surveyed didn’t know either what their employer is contributing per month on their behalf and almost sixty per cent were not aware of their own monthly contribution either.

Charles Cotton, spokes person for the CIPD, said: ‘It is crucial that the Government supports employers' efforts to communicate to employees the implications of these changes.

‘There is a real danger that, without Government support, 2010 auto-enrolment will prove to be a missed opportunity in achieving a step change in the uptake of pensions.’

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