With the changes in pension’s legislation, more employees than ever are being automatically enrolled into pension schemes with their respective employers. Employees who are affected by this are often unaware of these changes and the potential benefits or implications of being involved in such a process. There is a distinct knowledge gap between an employee’s idea of what their pension should be and the actual reality of the workplace pension that is offered. The engaged employer should be aware of this knowledge gap utilising many forms of media to engage with its employees.
Communications can take several forms from employee facing booklets to presentations made by product providers or financial planning consultants. With all of these methods it is important to keep in mind the three prime concerns of every employee: What do I have to contribute? What will I receive at my retirement? How much will I pay for this additional benefit?
Financial planning consultants can liaise with their clients to tailor the best delivery method to effectively engage with their employee demographic. Answering questions early and definitively provides a more stable grounding for employee engagement in the pensions process. There will always be issues which will be encountered over the employee’s time within the pension but the likelihood of the same queries and questions occurring can be decreased considerably by good employee communication and engagement.
Corporate Pensions Administrator