Major change to pensions goes unnoticed by millions

The biggest change to pensions that has taken place in several years is not something that everyone knows about. It is estimated that of the people affected by the changes, around 10 million are unaware of the changes that are being made to the pension schemes.

A recent piece of research has shown that over half of the workers affected have no idea that they are going to be automatically enrolled onto a new pension scheme. What is particularly remarkable about this ignorance is that it is only three weeks before the changes come into effect.

The study has been put together by Scottish Widows, the finance firm, and has involved over 5000 adults, and showed that the lowest paid in the group were generally unaware of the scheme, which is interestingly, designed to affect them the most.

It is estimated that only around 30 percent of employees who earn less than £20,000 a year are aware of the changes which are about to be implemented. The lack of information is particularly surprising when you consider the amount of media coverage the changes have been getting.

Interestingly, nearly 75 percent of employees think that financial advice should be given to them in the workplace, including information about retirement planning. Obviously, employees are being let down by their employers as they are not being fully informed about all of the changes that are being made to their pensions

The pension scheme means that all people who are aged over 22 and earn over £8100 a year are going to be enrolled in a new type of pension. This pension will involve minimum contributions from the staff as well as their employer.