The Need to get Independent Advice to Pension Scheme Members (March 2010)

We believe it is essential that all pension scheme members receive individual advice with regard to the most appropriate investment strategy and also on the level of personal contribution which is appropriate.

A recent survey undertaken by the Scottish Widows amongst employers and employees had the following results:

3 million workers have not joined their company pension scheme
40% of employees with access to an employer sponsored scheme have not joined because they did not know they had one
70% of 25-34 year olds think pensions are confusing
around 90% of employees do not want to make investment choices

These results highlight the need for independent advice to both employers and staff concerning the benefits of joining a company sponsored pension scheme and also the need for independent advice on investment fund selection.

In addition, they also highlight the need for a communication process that informs staff of the benefits of a pension scheme both on joining an organisation and just as importantly on a regular annual basis.

From the employer�s point of view, the contribution to the pension scheme is normally the second biggest expenditure after salaries and therefore it is very important that staff are aware of the benefit the employer is providing. The communication process helps to reiterate to the staff that their employer is investing in their futures and this can help to both retain and recruit staff.

The Cartlidge Morland Portfolio Service is designed to help pension scheme members with their fund selection and increase the chances of positive returns whilst matching their personal investment risk profile.

The Cartlidge Morland Investment Team constructs carefully researched portfolios for group pension schemes so that the scheme members can benefit from the expertise normally only provided to Cartlidge Morland�s private clients.

Each portfolio is devised in line with the Cartlidge Morland Investment Team�s macro-economic view of geographic regions, such as the United Kingdom and asset classes, such as equities and fixed interest.

The actual funds selected to represent the asset class and/or geographic region are chosen from the funds offered by the pension providers. The Cartlidge Morland investment team researches the market and picks those funds that meet their investment criteria.

Phone us on 020 7709 5560 or complete the online contact form