After the introduction of auto-enrolment, record numbers of people have started to save towards their pension. However, new analysis has revealed that some areas of the UK are still lagging behind, with the East Midlands averaging the smallest amount of savings.
In order to deal with the increase in pensions enrolment, and to properly look after their staff, employers within the Midlands would do well to pay extra attention to their workers pensions. Here, we’ll look at some of the reasons why businesses need to start helping employees with their pensions and how they can do it.
Helping businesses as well as employees
Helping employees with their pensions doesn’t just help them, but it also helps the business too. In a recent survey, 55% of firms felt that stronger employee engagement in their pensions would help to retain, as well as attract new staff.
The problem has been finding the resources within the business to communicate with workers about their pensions. It has also been revealed that younger workers and those on a low income are less likely to opt in to auto enrolment.
Younger employees less likely to focus on pensions
Interestingly, it’s the younger generation which has been found to be less likely to save towards their pension. Many are simply unaware of how much they will need to save over their lifetime in order to enjoy a comfortable retirement.
Therefore, more needs to be done to help the younger generation identify the importance of a workplace pension. Other factors currently stopping people from making regular monthly contributions include a higher cost of living an increased personal debt level.
Seeking help from independent pensions experts
There is no denying that helping employees to manage their pensions isn’t an easy task for businesses. Many are already starting to feel the strain as record numbers of people join the auto enrolment scheme. However, independent pension experts such as Hymans Robertson, can help.
Employers essentially have more to do with a lot less support to help them, while employees have a staggering amount of choice available. Independent advisors can help to support employers, while helping employees better understand their pension options.
Overall, it is encouraging to see a record number of people entering the auto enrolment pension scheme. However, more does need to be done to help support businesses in specific regions such as the Midlands, to help their employees understand their options and better manage their pensions. Businesses which haven’t yet considered doing so, should look into hiring the services of independent pension experts.