Pensions - Articles - Comment on the FAMR Guidance Consultation

 “Employers and trustees are well-placed to help influence employees saving behaviour, but many are concerned about promoting their schemes and pension savings in the fear they might cross the regulated advice boundary. We had high hopes that FAMR would help to allay these concerns with the publication of a factsheet clearly setting out what employers can say to their employees. However, simply reminding employers they can only provide factual information, but must avoid promoting their scheme as it could constitute a financial promotion, will give cold comfort and little reassurance to employers.

 We’re hopeful that the Financial Advice Working Group proposed portal and employer guide will go a long way to addressing this by helping employees to manage their financial well-being via the workplace. Thousands of pension savers are stagnating due to inertia and although the ‘streamlined advice service’ could be a breakthrough, many simply will not seek help. The workplace is at the heart of pension saving, but more needs to be done to empower employers to talk more positively about their own scheme, supported by financial advice from the experts.”