Your workplace pension scheme is one of the most important employee benefits you can offer, because it can help people create financial security in later life.
According to a government report, workplace pensions are often the main way people save for their retirement[1].
While this is clearly good news, employees may be less engaged with saving for their pension than you might think. In fact, data reveals that 12.5 million people are saving less than they need to for a comfortable retirement[2].
Meanwhile, amid the cost of living crisis, it’s thought some people reduced their pension contributions, or stopped them altogether[3]. As the financial pressures have started to ease, data has begun to show some improvements.
Research reported by PensionsAge shows that the number of people reducing or stopping their pension contributions is thought to be around 17% in the past six months, compared to 22% a year ago[4].
And yet, anecdotally, on speaking to young employees in our organisation, we learned many of their friends had opted out of their workplace pensions altogether.
With this in mind, here are three excellent ways to encourage greater engagement with your workplace pension scheme.
- Improve knowledge and confidence through a variety of engaging content
If people don’t understand how their pension works, they may be lacking the confidence needed to make informed decisions about their money.
On top of this, if they don’t realise the potential long-term benefits of their own contributions, they are unlikely to appreciate the added gains available through tax relief and employer contributions.
As an employer, you are ideally placed to rectify this lack of financial education, by offering support and advice alongside your workplace pension.
One easy win is to direct people towards online guidance, freely available from sites such as MoneyHelper or Money and Pensions Service. With topics ranging from pension basics and explainers about how pension tax relief works, such resources could prove a great starting point for employees who want to understand more.
If you have a workplace pension scheme with Titan Wealth Planning, we will work with you to encourage and increase employee engagement by providing guidance and specialist workplace advice – more on this below.
Another simple move might be to encourage employees to view our regular monthly insights or follow us on Twitter or LinkedIn to stay informed.
- Encourage people to talk about money
Encouraging people to talk about money could improve engagement with their pension. Hearing co-workers speak about their experiences may help those feeling confused about how their pension works to open up, share their concerns, and start asking questions.
The biggest problem here is that 81% of people actively avoid discussing their finances[5].
To combat this, it’s necessary to begin by normalising money conversations in the workplace. You could start by encouraging senior managers and team leaders to set the tone. If they open up conversations about money topics and pension savings, it could go a long way to reducing any associated stigma.
- Offer personalised pensions advice
Titan Wealth Planning is a financial planning firm, specialising in workplace pensions, employee benefits, and wealth management for individuals and businesses.
Providers of regulated financial advice, we are also able to offer financial wellbeing education sessions, and workplace pensions advice.
Our experienced team of corporate consultants cover the whole of the UK and you can call on us at any time to arrange to speak to your employees.
The team can provide advice and guidance to employees, offering support and guidance to help them:
- Understand the workplace pension scheme
- Identify individual financial goals
- Establish their attitude to risk
- Consolidate old pension pots.
Workplace advice not only leads to higher levels of employee engagement with your workplace pension scheme but also provides increased financial security and awareness for your employees.
Get in touch
As one of the main ways most people save for retirement, your workplace pension scheme is one of the most important employee benefits you can offer.
Our expert consultants can help you make sure your workplace pension is delivering great outcomes for you and your employees.
We’ll analyse current arrangements to ensure they provide value for members and then work with you to communicate the benefits of pension savings to your employees.
For more information or to arrange a meeting, email info@titan-fp.com or call us on 0800 048 0150.
Please note
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
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