Big employers to use employee benefits consultants for pensions

Most UK employers are intending on seeking advice from outside intermediaries to get their head around the impact of the government''s new pension reforms set for implementation in 2012.

Research from the Personal Accounts Delivery Authority (Pada) has shown that some 91 per cent are looking elsewhere before proceeding with their pension schemes.

Around two-thirds of small firms will go to accountants for their guidance, 56 per cent of medium-sized firms and 54 per cent of large firm will use financial advisors, while employers with more than 100,000 employees will use employee benefits consultants.

Roy Porter, head of intermediary distribution at Pada, said: "For many small firms, the introduction of automatic enrolment will be the first time they provide an employee pension and make contributions.

"Ensuring they have access to the correct information will be crucial in helping them comply with the reforms."

Last week a report from the Prudential showed that the gap between men and women''s pension incomes is continuing to grow, with men receiving nearly two-thirds more than their female equivalents upon retirement. Back