Post-auto-enrolment, and with further pensions reform due to take effect from April 2015, it is more important than ever to ensure employees are engaged with pensions.
Although the government has now confirmed how its guaranteed pensions guidance will be provided to all defined contribution (DC) scheme members, there are questions over whether this will be sufficient to engage staff and help them make appropriate decisions.
Last month, research by consultancy Mercer found that 62% of the 300 employers and trustees that took part in its survey do not think the guidance guarantee will provide enough support for DC pension scheme members. Yet, just 37% of respondents said they will offer staff additional workplace savings plans in the next three to five years, to provide flexibility and choice.
How pension reforms will change workplace pensions will be the subject of a conference session at Employee Benefits Live 2014 on 24 September at Olympia National, London. Mike Acred, pensions manager of LV=, and Ian Digby, industry liaison manager at The Pensions Regulator, will discuss what employers need to know to ensure their scheme is ready for the reforms.
On the same day, Pete Harris, director of pensions at Telent and Nita Tinn, director of Independent Trustee Services, will let delegates in on some of the secrets of how to obtain the best pensions outcome for employees.
Pensions are increasingly becoming a core building block in employees’ savings strategies, so employers have a role to play in supporting their efforts. I am a firm believer that the earlier employees are given the support and tools they need to get to grips with their finances and plan for their short-, medium- and long-term savings needs, the better.
For those looking to find out more, on 25 September at Employee Benefits Live, Mark Cliff, reward director at Manchester Airport Group and Michelle Cracknell, chief executive of The Pensions Advisory Service, will share their views on an employer’s role in helping staff to save for the future.
Putting the right measures in place now will serve both employers and employees well in years to come.