From Adviser Guide:
Q: What advice can I give eligible employees?
You should obtain as much information as possible from the employer, regarding the workplace arrangement.
Andrew Towner, director of employee benefits at Cartlidge Morland, said a grasp of the current pension plan is vital so it can be understood and you can ensure the personal financial planning is relevant and consistent with the client’s objectives.
He said: “This may involve advice regarding the investment options, death benefits and levels of personal contributions in excess of the minimum required by the workplace scheme.”
In most cases, unless paying into a pension would cause genuine hardship or financial difficulty, Steve Wood, a senior consultant for Helm Godfrey, said the best advice will probably be to remain enrolled and enjoy the benefits of employers and government top-up payments and the eventual retirement income the contributions will provide.
If an employee is eligible to join a separate employer pension scheme, Mr Wood said this should be assessed as an alternative to determine which is more attractive.
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