The Work and Pensions Committee is calling for trials of automatic appointments with the Pension Wise service as part of its new ‘Stronger Nudge’ interventions.
Jonathan Watts-Lay, Director, WEALTH at work, comments;
“Employers and Trustees must intervene and engage with their employees much earlier in order to make a real difference to their retirement decisions! Many workplaces now provide early interventions through financial wellbeing programmes that include financial education and guidance including the use of digital tools such as the WEALTH at work Financial Healthcheck.”
Watts-Lay explains; “For example, this can include offering a mid-career ‘rain check’ to help people to see if their savings are on target, and what to do if they’re not. Topics can include reviewing financial goals, developing an investment strategy, maximising tax efficiencies and how to plan for retirement.
Then in the years before retirement, support should be provided around tax efficiency, planning for retirement and understanding retirement income options, clearing debt and maximising pension benefits and other savings.
Around a year or two before retirement, people may need help understanding their options and how to implement their plan including thinking about their retirement goals, how to access retirement savings, understanding the risks, tax planning and how to seek further guidance and regulated financial advice.”
He adds; “We find that individuals who access such programmes emerge more confident, knowledgeable and more able to make informed decisions about their retirement; it has been no surprise to see significant numbers of members taking action and changing their retirement plans, increasing pension contributions and seeking out regulated advice as a result. For example, we find that about 80% of attendees request a call-back for further guidance or advice following a retirement financial education session.”
Notes to editors:
WEALTH at work is a leading financial wellbeing and retirement specialist – helping those in the workplace to improve their financial future. Established in 2005, we work with hundreds of organisations across both the private and public sector by offering financial education, guidance and regulated financial advice.
Our financial education and guidance services are delivered on a bespoke basis and can be specifically designed to help the entire workforce make informed decisions about their finances to support their financial wellbeing, covering everything from debt and money management through to optimising employer sponsored benefits and retirement income options. This can be delivered face-to-face or online and utilises digital nudge technology to encourage employee engagement and participation. For more information, visit www.wealthatwork.co.uk
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