Marvin OnumonuHymans Robertson has started a three-year project to help companies prepare for future pension adequacy.
The pensions and financial services firm said more responsibility will fall on businesses to ensure workers have enough for retirement, as companies are expected to play a bigger part in tackling the UK retirement crisis.
The firm said it is vital for businesses to act early or risk problems later, with workers who have not saved enough having to make tough choices about when they retire or how long they work.
Research from Hymans Robertson found that 35% of companies thought employers should make sure staff have a suitable retirement income.
The firm added that companies that take action now can avoid being caught out by changes to the retirement system.
Leonard Bowman (pictured), head of corporate consulting at Hymans Robertson, said: “From our annual survey of UK companies, 35% of employers believe that the responsibility for ensuring employees have a suitable retirement income sits with them.
“Whilst this is already a sizeable proportion of UK companies, we expect that percentage to climb dramatically over the next few years.
“We believe the proactive role of companies in addressing adequacy in retirement will be fundamental to the UK retirement landscape over the coming decades.”
Bowman added: “As a firm, we’re committed to supporting businesses through this transition, ensuring they are well-prepared to cope with the changes and continue to thrive.
“Critically, as employees approach retirement with inadequate retirement savings, this will increasingly cause serious issues for employers.
“Employees will be forced to make undesirable decisions around their retirement and employment patterns, with both wide and far-reaching consequences for UK corporates.”
He said: “At the same time, we know that the Government policy will evolve and will almost certainly impact companies in unforeseen ways.
“On the bright side, with momentum continuing to build around CDC and growing innovation in the DC market, better and more efficient solutions are emerging all the time.
“Corporates must be in a position to make informed decisions around these changes.”
He added: “What this all means is that companies need to engage today in regard to the issues coming down the road, in order to be in the best possible place to align their corporate strategy with what is coming.
“Our call to action is driven by a belief that companies need to be at the heart of any solutions, and must avoid being caught out in a few years’ time by what could be quite seismic changes to the UK retirement landscape.”
