More people than ever reply on employers for retirement planning advice

13 per cent of non-retired people are looking to their employers for advice on retirement planning, according to recent research conducted by Baring Asset Management. This makes up 4.8 million people in total.

This number is a large increase from just nine per cent in 2014, and seven per cent in 2013.

14 per cent of respondents thought that it was their employer's responsibility to ensure that they fully understand the asset allocation of their pension plan. 56 per cent did however realise that the responsibility was their own, while a further 22 per cent thought the responsibility lay with the pension provider.

The most often used source for retirement planning advice is financial advisers, with 27 per cent of respondents consulting them for support. 20 per cent would speak to their bank or building society for help, while 20 per cent chose to manage financial planning themselves.

The survey showed that young people aged 18-24 are particularly hesitant to speak to professionals about financial planning. Instead 40 per cent rely on friends and family for advice. This younger segment was also twice as likely to look to an employer for help compared to the pre-retirement segment, with 17 per cent admitting to asking an employer for help, compared to eight per cent within the rest of the pre-retirement respondents. 

Rod Aldridge, head of EMEA wholesale distribution at Baring Asset Management, said: "Once again our survey shows more people relying on their employer for financial advice – an indication of the central role our work plays in our lives and its role as an increasingly significant distribution challenge. It is also very encouraging that IFAs continue to be key as the importance of independent advice remains fundamental to effective financial provision in retirement."