A "WORRYING" number of smaller firms have no idea about impending changes to laws on pensions and age discrimination, according to a new report.

A survey of 200 firms found that almost half were unaware of changes in the Pensions Bill and how they would affect their pension scheme.

More than two-thirds said they knew nothing about anti-discrimination legislation coming into effect in two years, which will lead to flexible retirement ages.

Finance firm AXA, which conducted the research, said few small and medium-sized companies (SMEs) had already made changes to their employment structure ahead of the new law. Steve Folkard, head of pensions marketing at AXA, said: "It is worrying that so few firms are aware of the forthcoming changes to the Pensions Bill and the anti-discrimination laws.

"Both pieces of legislation will affect how SMEs structure their employee pension schemes and it's important that those that don't know about the changes take advice sooner rather than later."