Employees in Novell UK’s group personal pension (GPP) have increased their pension contribution rates following a pensions communication drive by the software company.†
Back in May, the company, which employs 160 in the UK replaced its four GPPs which were run by three different providers with a single GPP.
It then embarked on a communications drive to encourage the 156 members of the new GPP to save for retirement by increasing their contribution rates. This included employee presentations and individual sessions with a financial adviser.
To aid this process, consultant, Secondsight, used its Secondchance programme to explain to employees that they could achieve their personal retirement goals by committing to increasing their level of contributions over a two-to-five year period. Any increments would co-incide with pay increases.
The final statistics show that the increase in contributions among the 25-to-29 year age group was particularly significant. Before receiving advice, members of this group contributed, on average, 6.5%. After a meeting with an independent financial adviser the average level of contributions increased to 10%. If these employees continue to save through the Secondchance plan, then at the end of five years, the average contribution paid into a member’s account will be 11.3%.
Penny Dixon, HR director of Novell, said: “Over 70% of our employees now [also] place a higher value on the pension we provide, delivering a much higher return on investment for us.”