Barclays Financial Planning highlights NPSS knowledge gap among smaller companies

Almost one in seven (14 per cent) of small to medium sized employers have never heard of the government’s plans for compulsory contributions to the National Pensions Savings Scheme (NPSS) according to recent figures from Barclays Financial Planning.

The survey conducted among 200 small to medium sized companies showed a further two in five (41 per cent) had heard about the proposals but knew nothing about them. Only two per cent claimed to know ‘a great deal’ about the proposals to automatically enrol those employees without a work place pension in to the proposed national scheme.

Keith Phillips, Head of Customer & Advice Propositions at Barclays Financial Planning commented:

" It is clear from our research findings more has to be done to improve not only individuals’, but more importantly companies’, understanding of what the NPSS will mean in practice and how this will affect them. It is vital people feel motivated and empowered to save for the future through whatever mechanism that best suits that individual. Barclays believes retirement planning solutions should not be a one size fits all approach. "

Amongst those who were aware of the government’s plans, the survey showed a clear split in terms of what impact this would have on employer pension provision; almost a third (27 per cent) believe the scheme would have no impact on employer pension provision and maintained they would continue to provide pensions schemes at the current level, whereas almost a fifth (18 per cent) employers would close their current schemes and join the NPSS.

Phillips concludes:

" At Barclays Financial Planning, we understand the issues at a personal level and with access to over 800 advisers, we can help people plan for the future with confidence. "