News: Employees lose money through mix of apathy and ignorance.

Pensions Week, July, 2005

Employees are losing retirement income through a mixture of ignorance and apathy and this could be prevented by better communications, according to Hewitt Associates. [ ] The consultancy firm has proposed a five-point plan that it believes could encourage more employees to take out defined contribution (DC) pension schemes.

[ ] To prepare employees for retirement, firms must establish clear communication objectives; use simple, everyday language; tailor information to suit different groups; ensure expectations remain realistic; and employ more case studies. [ ] As part of the firm's research, Hewitt conducted a survey that revealed fewer than half of employees sign up to their company's DC pension scheme. [ ] "If they were able to understand as much as they...

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