3 ways to help employees engage with their pensions
High pension engagement levels could make a big difference to how your employees feel about their finances – and about their life in retirement.
According to Standard Life’s Retirement Voice 2022 report, people who spend time on their pension planning are reaping the rewards of being prepared.
It’s clear that when people engage more with their pension, it can have a knock-on effect on their overall financial wellbeing. For your employees, this means that they’re likely to feel less stressed and distracted by money worries, and more in control of their finances – which can have a positive impact on their productivity and performance at work.
So, for this Pensions Awareness Week, here are some ways to encourage employees to get more familiar with their pension plans.
1. Financial education
Knowledge is a confidence booster. It can help employees make informed decisions about their money, which could benefit them today and in their financial future.
Employers are perfectly positioned to provide the information and guidance people need, because they can incorporate it into their workplace pension offering.
Employers can help by signposting to free guidance such as MoneyHelper, Pension Wise, and The Money and Pensions Service. These cover a range of pension topics, from getting started with a pension plan to how tax works in retirement.
2. Encourage money talk
Talking about money could help employees engage more with their pension. People can learn a lot by hearing about others’ experiences and it could encourage someone to open up if they’re feeling confused by how their pension works.
That said, many find it difficult to talk about money. In fact, according to The Money and Pensions Service, 81% of people avoid it altogether.
Help break the silence by normalising these conversations in the workplace. To make the most impact, start at the top by getting buy-in from senior managers and business leaders. They set the tone of your workplace culture, so by getting them on board can help reduce any stigma surrounding money talk.
3. Remind employees to keep details up to date
It’s important for employees to keep tabs on their pension plan details, because if information is out of date or missing, it could have a big impact.
For instance, old pension pots could be left behind if people forget to update their address when they move home. Studies show that just one in 25 people would think to tell their pension provider that they’ve moved. This could explain why the value of lost pension pots has reached a staggering £26.6bn, according to the Association of British Insurers.
As an employer, you can encourage employees to check their pension plan via a communications campaign. Sending regular updates – rather than a one-off email – could act as valuable reminders to employees at different life stages and nudge them into action.
For more information on financial wellbeing, including resources on how you can help support your employees, go to Standard Life’s Financial Wellbeing hub.
In partnership with Standard Life
Standard Life are part of Phoenix Group, the UK’s largest long-term savings and retirement business. We both share an aligned ambition to help every customer enjoy a life full of possibilities.
