As reported by Pensions Age, employers must play a far more proactive role in tackling the UK’s growing retirement adequacy crisis or risk facing a government-imposed “one-size-fits-all” solution, warns study
A survey of 500 employers, released as part of a three-year Retirement Adequacy Project, found that most employers believe they (more than government, pension providers or individuals) should take primary responsibility for helping staff achieve a sufficient retirement income.
Recent DWP figures highlight the scale of the problem: nearly half of low earners are set to fall short of even the minimum retirement income of around £13,000 a year, while the vast majority will also miss the moderate (£32,000) and comfortable (£44,000) income standards.
The study warned that employers who ignore the issue face wide-ranging risks but also remain best placed to influence outcomes. For SMEs, the issue is particularly relevant as smaller employers often lack dedicated HR or pensions teams, meaning any future regulatory changes could bring added administrative pressure and cost. Taking early, voluntary action through clearer pensions communication or stronger financial wellbeing support may help smaller firms stay ahead of potential new requirements.