Pensions & employee benefits roundup – January 2016
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 December 2015.
UK retirement income among lowest in OECD countries
Pensions Age, 1 Dec
The United Kingdom has one of the lowest average retirement incomes among all the countries in the Organisation for Economic Cooperation and Development. The Pensions at a Glance report by the OECD revealed that average earners without a private pension in the UK have the third lowest ‘replacement rate’ (The drop in income when moving from work to retirement) in the OECD.
Health Insurance Daily: A third of over-65s intend to live with their family if they need care
Health Insurance Daily, 1 Dec
A third of people aged over 65 plan to move in with their families if they need care, but only 6% have actually mentioned this, a poll suggests. Partnership’s Fourth Care Index found the number of people who would look to their families for support has increased from 19% in 2014 to 30% in 2015 as they become increasingly aware of typical care home fees of £29,558 per year.
How Important Are Employee Benefits when Recruiting?
Small Business Trends, 3 Dec
What is one of the best ways to attract talented employees to your company? Offer great employee benefits when recruiting them. In general, 71.6 percent of companies offer benefits, which can range from health insurance to a casual dress code, tuition reimbursement to fertility treatments like egg freezing.
11% believe staff save enough for retirement
Employee Benefits, 7 Dec
Just over one in 10 (11%) respondents believe their employees are saving enough for retirement, according to research by Wealth at Work. Its study, which surveyed 94 employers, also found that 40% of respondents do not offer their workforce financial education around the options available to them under the pension freedoms, which came into effect in April 2015.
Half of working Brits avoid pension advice
HR Director, 8 Dec
More than half believe that pension advice will be too expensive and an astounding twenty-nine percent of Brits don’t seek professional advice as they find discussing their finances and pension provision too embarrassing.
In 2014 period life expectancy at birth in the UK was 79.3 for males and 83.0 for females. By 2039 period life expectancy at birth is projected to reach 84.1 years for males and 86.9 years for females, an increase of around 4 years since 2014.
Capita’s Atlas master trust gains PQM Ready standard
Professional Pensions, 14 Dec
Atlas is the latest master trust to be awarded the Pension Quality Mark (PQM) Ready standard. In order to receive accreditation, schemes are independently assessed in the areas of governance, charges and communications. Capita Employee Benefits chief executive Susan Ring said the award would boost confidence in the scheme.
20% save more into pension as a result of pension freedoms
Employee Benefits, 15 Dec
A fifth (20%) of respondents are saving more into their pension as a direct result of the pension freedoms, according to research by Aegon. Its fourth annual UK readiness report, which surveyed 3985 adults, also found that just 8% of respondents are currently on track for the retirement income they aspire to.