UK Youngsters Unaware of Pension Reforms

14th September 2011

53% percent of young job seekers aged 18 to 24 are ‘totally unaware’ of mandatory pension reforms going into affect in October 2012, warns the latest survey by the Chartered Institute of Personnel and Development (CIPD). Those with the most awareness of 57% were workers aged 55 and over.

The CIPD survey notes that less than one third employees in private sector jobs aged 18 to 24 were aware of the Government’s plans to automatically enrol them in a pension plan.

CIPD advisor for performance and reward, Charles Cotton warns employers and recruitment personnel that they need to communicate this information to their younger employees. The Government also needs to target pension reform information to the nation’s youth. ‘With less than a year and a half to go,’ says Cotton, ‘employee awareness is generally quite low.’

Younger male employees may be more distracted by focusing on their careers than their retirement, which makes it all the more urgent for employers and the Government to bring pension reform to their attention. The CIPD study also reported that 59% of workers were ‘worried’ about making enough money for retirement. However, only 53% of male employees were concerned compared to 69% of females. – online recruitment specialists in the UK.