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One in six employers feel their staff are still unclear about pension freedoms, more than six months after they came into force

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One in six employers have noticed staff are still scratching their heads over pension freedoms, despite the new rules having been in force since April, according to a study by Close Brothers Asset Management.

However, some staff are getting the hang of the rules. In the survey of almost 900 UK employers, 21 per cent said their workforce had a good understanding of pension freedoms and 33 per cent said their employees had a limited understand.

While three months ago the vast majority of employees were turning to the government’s Pension Wise service for advice, staff are now turning to an evenly split mixture of Pension Wise, employers and advisors.

And people are doing a bit of Googling as well, with 14 per cent of employers saying their staff had searched online to help improve their knowledge of pension freedoms.

“There is clearly still a lot to be achieved when it comes to ensuring employees are well informed about the pension reforms and the impact on their financial decisions,” said Jeanette Makings, head of financial education services at Close Brothers Asset Management. “There is an encouraging number of companies who feel their workforce has a good understanding of the choices they need to make, but there are still many who remain confused or who only have limited knowledge and that is a concern.”

Makings added: “Employers, with their knowledge of staff’s individual financial circumstances, can play a vital role in raising awareness and helping them make well informed decisions, so even small steps to help will make a huge difference.”

The pension freedom rules, which were announced in the March 2014 Budget, allow people aged 55 and over the access their pension pots without purchasing an annuity. According to HM Revenue and Customs (HMRC) figures released in October, £2.7bn has been withdrawn from pensions so far under the rules.