Cash to help workers understand pensions

Funding for a series of pensions education projects will be extended until March 2009, Pensions Minister Mike O'Brien announced today.

Twenty-six projects across the UK will share the £1.47m Pension Education Fund.

The schemes, offered by a wide-range of organisations, were set up in January 2006 to develop innovative ways of talking to people in the workplace about pensions and retirement planning.

Mike O'Brien said: "The Pension Education Fund is about trying to reach people who perhaps have never thought about pensions or what they might do when they retire.

"The scheme is a useful way to give people the information they need to make decisions about their futures. The workplace is an ideal place to do this; often someone's first contact with pensions is through their employer's scheme and research shows that workers trust their employers to provide accurate information about their pensions."

He added: "There is an appetite out there for simple information about pensions and finance in general. Whether it be tackling debt, saving towards a mortgage deposit, or planning for retirement, people have to make important financial decisions throughout their lives.

"The Government is currently working with the FSA to set up a Money Guidance Pathfinder project following recommendations by an independent review. This will help people find their way through the money maze by providing simple generic advice."

The funding will allow schemes to continue to offer information and educate people about the importance of saving for a pension.

Schemes take a number of different approaches including presentations, workshops and one-on-one retirement planning.

Since 2006 the projects have reached an estimated 100,000 people.