Tackling pensions adequacy: your DC checklist

The spotlight is firmly on pensions adequacy. Here Hymans Robertson detail how employers can act now to better support adequate retirement savings.

The Government’s new Pension Commission has put the spotlight on pensions adequacy. With 14.6 million working-age people under saving for retirement, and many in their 40s and 50s at greatest risk, the challenge is clear.

Recent research shows that 41% of people aged 40–75 don’t know how much income they’ll need in retirement, and 13% lack confidence in making decisions about their pension savings.

While the Commission’s final report isn’t due until 2027, employers can’t afford to wait.

Inadequate retirement savings can lead to delayed retirements, increased financial stress among employees and reputational risks for employers.

So, what can employers do now?

Closing adequacy gaps isn’t just about increasing contributions.

We’ve created a checklist to help you assess your current position in terms of action taken and policies in place to address the pension adequacy of your workforce.

The checklist splits actions into both short and long term. Short term actions aim to help you assess the scale of the issue in your workforce, along with some potential ‘quick wins’.

The longer-term actions may require bigger changes and more strategic thinking.

Download the full checklist to find out how you can better support the retirement adequacy of your workforce.