13 Mar 2018

Pension tips to improve your employees' financial wellbeing

Small changes now could make a real difference to the future financial wellbeing of your staff. With 54% of people having difficulty sleeping due to financial worries and almost a third (30%) reporting that even thinking about retirement is stressful, it’s clear that many people would benefit from being more in control of their finances (Scottish Widows Mindful Retirement Report, May 2017).

Here are some tips that could help you and your employees take the first steps towards financial wellbeing:

1) Review what you have

Check what pensions and other financial policies you have, and make sure to read your annual statements to check they still meet your needs.  

For peace of mind, complete the nomination forms for any policies that can be paid out to your loved ones in the event that you’re not here to benefit from them. This important step will ensure that your money will go to the people you want it to as quickly as possible.  

Track down any lost pensions on gov.uk/find-lost-pension. You can even combine them into one pot depending on the type of plan you have.  

Use online comparison sites to get the best deals on regular outgoings, like utilities and insurance.  

2) Make the most of your entitlements

Remember – when you contribute to your workplace pension, your employer contributes too. If you’ve opted out, you’re missing out on their contribution.  

Pension contributions get tax relief from the Government too. If the basic rate of tax is 20%, the Government will add an extra £20 for every £80 you pay in (depending on your individual circumstances). 

Find out if your employer offers any extra benefits that could save you money, such as childcare vouchers or travel season tickets.  

Find out if you are entitled to any state benefits that you are not currently claiming.  

3) Plan ahead

Consider how much you’ll need to live on when you retire. In general, Britons think the ideal income in retirement is around £24,000 a year (Source: Scottish Widows Retirement Report 2016), but everyone is different.  

Think about saving as much as you can afford each month, and perhaps top it up with any extra cash such as when you receive bonuses or pay rises.  

Check what State Pension you’ll be entitled to at retirement at gov.uk/check-state-pension, and factor this into what you’re hoping to retire on.  

Make a will, especially if you have dependents.  

4) Where to go for information

Make the most of free guidance. Free resources, such as Money Advice Service and Pension Wise, can help you take control of your finances and plan for the future.

This article was provided by Scottish Widows.