Despite there being an increase in demand for guidance around the pension reforms from both employees and employers, it is concerning that some employers may be holding back on providing access to guidance for their staff because of the risk that this may be perceived as a recommendation of advice.
There is a distinct difference between guidance and advice and providers who deliver both can help an employer to manage any risk of their staff confusing these different services.
With the newness of pension freedoms wearing off, why are some employers still reluctant to talk to their employees about their options? Since April, we’ve seen a small but significant number of employers telling us that they are actively avoiding sharing any kind of information about pensions generally and pension freedoms in particular, with their workforce. They cite concern that by signposting information they might be seen as giving advice or, in some way, be held accountable for the decisions individual employees make about their pension pot.