Pensions & employee benefits roundup - April 2018
Employees underestimate how long they spend in retirement, how long they’ll live and regret not starting saving for retirement sooner. Employers can help employees to see the value of proper retirement planning from early on, saving employees from the feelings of regret over a missed savings opportunity.
Aegon asked working people what their biggest saving regrets were and 51% of respondents mentioned not starting early enough, or taking a break from saving for retirement. The other common regrets among those surveyed included not making a financial plan / poor planning (14% of people) and 12% felt that they should have been more engaged and either joined their workplace pension scheme or moved out of their default fund.
Among the respondents who have already retired, delaying the savings decisions was the most common regret, cited by 38% of respondents. Poor planning the second most often cited regret, mentioned by 18%, while the third place went to regrets over how the respondents had used their pension pots (14%).
Anish Rav, the head of DC proposition and strategy at Capita Employee Solutions, discusses the need for employers to support their employees in their retirement planning. Many employees hope for a flexible approach to retirement, where the journey to retirement is a phased one and the retirement as a clear-cut one-off life event is no longer the standard approach to all.
Employees are not fully aware of how much they should be saving for retirement. Our research has found that employees have unrealistic views over how long they expect to live for and how long they would need to fund their retirement. We asked employees how long they would live and compared it to the actual probability of reaching a certain age and found that employees, on average, underestimate their life expectancy by around 15 years.
Throughout the month our research team keep a close eye on what is happening in the pensions and employee benefits industries. Here is a roundup of the best news articles and stories for March 2018.
A new study looking at workplace trust and the impact on employee wellbeing reveals that over half (53 per cent) of employees considered it to be a major factor in whether they stayed or left a company.
Why employers must help their staff to start thinking about retirement
14 March, REBA
If on the day you plan to retire you discovered you had not saved anywhere near enough to enjoy the kind of retirement you hoped for, what would you do?
Delaying a saving decision, the nation’s biggest pension regret
17 March, Aegon
When asked what their biggest saving regrets was, 51% of working people cited not starting early enough or taking a break from saving.
Protecting defined benefit pension schemes
19 March, Department for Work and Pensions
The Department for Work and Pensions has published a white paper explaining how the government intends to increase the protections for defined benefit scheme members and make improvements to the system.
TPR and FCA joint strategy consultation
19 March, The Pensions Regulator
TPR and FCA have launched a joint strategy consultation to consult stakeholders and other parties to understand their views on the biggest current and potential risks.
Brits in hibernation with quarter not leaving the office for days
19 March, British Heart Foundation
New figures show that two thirds (62%) of Brits are holed up indoors, spending a maximum of two hours outdoors in an average working day.
FCA announces changes to advice on pension transfers
26 March, Financial Conduct Authority
The Financial Conduct Authority (FCA) has published new rules on pension transfer advice and is seeking views on additional changes, including adviser charging structures.
Over a quarter of businesses unprepared for rising workplace pension contributions
26 March, NOW:Pensions
Over a quarter (28%) of senior business decision makers are unaware of increases to minimum workplace pension contributions from 6th April according to a survey of 691 senior decision makers.
Engaging with staff on workplace pensions 'fundamental' to successful retirements
27 March, Confederation of British Industries
Just 1 in 10 firms are happy with their current levels of employee engagement on pensions.
TPR launches master trust code for consultation
27 March, The Pensions Regulator
The code of practice for master trust authorisation has been published for consultation today by The Pensions Regulator (TPR).
Why employee financial wellness is an issue for employers
28 March, Capita Employee Solutions
Mental health issues and stress caused by financial problems are not confined to the time an individual spends outside the workplace, it can also have a negative effect on their working lives too.
Addicted to work
29 March, Aviva
A third of UK workers stay connected while on holiday and one in five UK workers haven’t taken a holiday in the last year.
Mental health ‘a boardroom priority for two-thirds of businesses’
29 March, Health Insurance Daily
Mental health is now a priority at board level for almost two-thirds (65%) of businesses, rising to 72% among large corporates, research shows.
Our research reports are aimed at Pension Trustees and HR Directors, covering topics such as pensions, health, flexible benefits, engagement and wellness. They are free to download!Find out more