Analysis
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AnalysisHow to create an effective pension communications strategy
An effective communication strategy acknowledges that members are at different stages of their lives and careers, and, therefore, process information differently.
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AnalysisHow to review a pensions contribution structure
Source: Andrii-Yalanskyi/Shutterstock Employers should review DC pension contribution structures to keep employee incentive and remuneration packages relevant as well as keep up-to-date with legislation. Contributions may need to be restructured or harmonised to take account of legacy systems, as well as reviewing gender ...
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AnalysisHow to improve employees’ confidence in making pension investment choices
Choosing a pension provider that offers easily accessible and age appropriate investment education can increase employees’ confidence on the topic. Investment fund choices for employees with specific needs or beliefs ensure wider needs are met. Offering financial guidance and advice, as well as signposting to resources, ...
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AnalysisHow to help staff trace and consolidate small pension pots
Credit: Dilok Klaisataporn/ShutterstockNeed to know:Significant amounts of money are tied up in small pension pots, many of which may have been forgotten.The Pensions Tracing Service can help people reconnect with lost pensions.Employers can help staff with this process and engage with pensions more generally.The UK is sitting on a ticking ...
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AnalysisEmbedding a joined-up savings approach
Credit: tadamichi/ShutterstockNeed to know:Employers are reporting more appetite among employees to save, especially for retirement, but encouraging a joined-up savings habit can still be challenging.Using payroll-based tools is becoming popular, but whatever products employers put in place need to be accompanied by ongoing financial education.Employee benefits professionals are key to ...
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AnalysisEducating staff about at-retirement choices
Credit: Andrii-Yalanskyi/ShutterstockNeed to know:Employees nearing retirement need to know if they can retire and what their options are.Employers can direct them to support from providers, send out newsmails or facilitate access to qualified financial advisers.It is important for employers not to be seen to be pushing people towards retirement or ...
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AnalysisHow can employers nudge staff into saving more into their pensions?
Credit: Stephen Barnes/ShutterstockNeed to know:Employers should seek to understand the competing priorities that might stop individuals saving for retirement.Inertia is a powerful tool: enrol people at a higher rate and most will not choose to opt-out.There is no one-size-fits-all when it comes to communications, which should be highly personalised.It is ...
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AnalysisWhat should employers look for in a default investment strategy?
Credit: Shutterstock/Olivier-Le-MoalNeed to know:Lifestyling is the optimal solution for defined contribution default strategies.A big trend is to introduce investment in private equity into default funds for young members, to drive returns.The new reporting regime for pension schemes to disclose their investment allocations to UK markets is flawed.Most defined contribution pension ...
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AnalysisWhat do employers need to know about the pensions lifetime allowance abolition?
Credit: Natata/Shutterstock Need to know: The abolition of the pensions lifetime allowance in April will require an overhaul of employee communications, and a revaluation of pension scheme design and administration, including opportunities to simplify the scheme and reduce the cost of running it. Employers will need ...
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AnalysisWhat actions can employers take to close the gender pensions gap?
More employers could introduce gender inclusive paid parental leave to prevent and try to close gender pension gaps.The Pensions (Extension of Automatic-Enrolment) (No. 2) Bill will remove the lower earnings limit, enabling more employees to pay into a pension.In order to help close the pensions participation gap, more education on ...
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AnalysisWhat does the government's pots-for-life plan mean for employers?
Credit: P Maxwell Photography/Shutterstock The pension pots-for-life plan takes the onus off of employees to keep track of their pensions as they move jobs. Clarification is needed on how employers would manage the process of putting employees’ contributions into many different pension pots. Pots for life ...
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AnalysisTop tips for boosting employees’ pensions knowledge
Need to know:Employers can tailor content and communication channels to different employee groups to help with their pensions knowledge.Losing the jargon will make the language of pensions easier to understand and more relevant to staff.They could invest in financial coaching for a more personal approach to pensions education.Workplace pensions are ...
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AnalysisHow to conduct a pensions buy-in
A buy-in is a contract between a defined benefit pension scheme and an employer that removes longevity, market, interest and inflation risks.The parties involved include a sponsoring employer, a scheme trustee, advisers to the trustees and the insurer.If it looks like funding levels are affordable for the scheme against current ...
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AnalysisWill the Mansion House reforms deliver value for employees?
Need to know:A raft of proposals have been launched to improve value for money in pension schemes.The government’s big theme is to get more invested in private equity, which should boost the economy.Poorly performing schemes could be forced to merge with better performing schemes.In July, Chancellor of the Exchequer ...
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AnalysisHow to sell pensions change into an organisation
Need to know:Change will happen when it comes to employers’ pensions plans. Whatever the change, some universal principles remain true.Stakeholders should be involved early, to ensure they can voice any objections and feel involved in the process. Avoid legalese; be honest, clear and concise. If it is bad news, upfront ...
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AnalysisWhat impact will the living pension initiative have on employees’ retirement outcomes?
As a voluntary savings target, the living pension initiative sets out the minimum annual contribution needed to afford basic living costs in retirement.Employers should ensure that employees who increase their contributions in line with this are not saving at a rate they cannot afford.Organisations should engage employees in their future ...
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AnalysisWhat impact will CDC pensions have on employers’ retirement provisions?
Need to know: Collective defined contribution (CDC) pensions potentially offer a more sustainable way of funding pensions and reducing pension liabilities for some employers. Their potential to provide a more secure and predictable retirement income for employees could help to close the retirement savings gap that ...
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AnalysisWhat is the current state of play with pensions dashboards?
Need to know:The Department for Work and Pensions announced a delay to the delivery of the pensions dashboard programme in March 2023.Employers should use this additional time to make sure they have their data up-to-date, in order and correct.Employers should also consider their communications and resources; once the dashboard project ...
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AnalysisHow have pension freedoms impacted retirement planning?
Need to know:Increasing education about pensions is key to helping employees make the right decisions about accessing their pension savings early.The ability to access pension funds early could prompt changes to the way that pension providers invest for their members.New initiatives, such as the Living Pension, provide an opportunity for ...
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AnalysisHow to implement flexible pension policies
Flexible pension policies can help employees shore up short-term financial wellbeing, while still saving for the future.In difficult periods, the ability to flexibly drop or pause pension contributions could be invaluable.Flexible policies should be combined with effective communication and education to ensure staff understand the impact of their choices.The word ...