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Large companies are set to take a bigger role in helping employees achieve financial security as research from Watson Wyatt reveals employees still struggle to understand pension benefits.

A survey conducted by the pension consultant among 2000 employees and 70 large private sector employers, revealed that nearly three-quarters of UK employers want to offer financial education and planning assistance to their staff.

A further 70 per cent of employers said they wanted to improve the perception of the employee benefits package they offered, while only 18 per cent of employers said they felt they were getting the full value from the employee benefits they currently provide.

Gary Smith, senior consultant for Watson Wyatt, said employers wanted their employees to fully understand the benefits they were giving them.

He said: "Many employers invest a significant proportion of payroll and other employee benefits. But they are frustrated that the value of these benefits is too often not fully understood or appreciated, and that some employees make financial decisions that they will later come to regret."

Diane Needham, financial adviser for Buckinghamshire-based Chessman & Partners, said a huge amount of education was needed for people of all ages and walks of life.

She said: "There is a lot of misunderstanding about what they are giving up, when people say no to a company scheme. A lot of people are offered it but do not understand, so miss out for year and years."

She added that the least likely of candidates were often woefully unaware of the ins and outs of pension benefits.

She added: "I have had instances where some company directors who offer group pension schemes have not understood how the pension scheme worked and if the director does not understand it, then how are the employees ever going to?"