Workforce planning: are your employees marching towards a lifetime of work?
After receiving increasing numbers of HR and pension professionals asking how they can better prepare employees for retirement, we recently put together an experienced panel of industry experts to try and agree areas of best practice. The issue of employees’ engagement in their own long term savings was discussed in the wider context of employee financial wellness. Undoubtedly this is a hot topic but also one where it was felt a lot of money could be wasted if not done correctly.
There were some consistent themes which came out of the session but by far the most shocking was the identification of a ticking time bomb present in the workforce. There seems to be a hangover from the world of final salary pensions with people expecting to be OK when they reach retirement. Most employees are totally unaware they are not saving enough to be able to retire as and when they choose and there is a feeling the blame will be directed on the employer unless action is taken.
The most worrying misconception was that employees who have been auto-enrolled think they’re ‘sorted’ despite being on minimal contributions. It was agreed radical change was the answer and financial education, although a good beginning, was by no means providing enough in terms of changing the saving behaviour of employees. Digital solutions and robo-advice was discussed in the context of providing more direct support to staff.
Our new whitepaper, Retireability: employers’ biggest challenge yet explores practical ways in which we can tackle the pension crisis. It examines why employers should provide financial wellness initiatives, as well as whether employers themselves feel ready to be responsible for the financial affairs of their staff. Download it here.
Phil Blows is director of Wealth Wizards.
This article was provided by Wealth Wizards.
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