This week is Pensions Awareness Week which provides an ideal platform for individuals to think about their pension provision and to engage with their employers on the subject.
Auto-enrolment is not ‘job done’
While it’s very useful to have pension contributions automatically deducted from pay the downside is that individuals often don’t really think about that sum – and indeed whether it is enough for the future they want. It’s important not to think of auto-enrolment as job done – “I have a pension and so I will be fine in my retirement”. While auto-enrolment is widely agreed to be a positive move, if employees are only paying basic contribution levels will that be enough to live the life they want. As a Broadstone Pension Consultant one of my first questions is “are you saving enough for retirement?” many are not.
Our pension support and advice to businesses includes reviewing legal and regulatory developments, auto-enrolment compliance and projected values and replacement ratios, vital support for employees but a turn-off for employees. That’s why at the same time as offering professional service support on pensions to SMEs we can also offer your staff retirement guidance and advice presented in an easy to understand and friendly way.
What will my retirement look like?
At Broadstone, we find ourselves more and more in demand to offer one-off or continuous support to members, taking the time to understand each individual’s circumstances in order to support them in their long-term pension planning. It’s really important to communicate with your employees in a way that cuts through the noise and jargon around pensions and present an easy-to-understand picture on what retirement will look like based on current savings plans.
For example, in-depth cashflow modelling work offers individuals a chance to see how their retirement plans can be realised and will even look at things such as long-term care provision, particularly relevant in the light of recent government announcements on National Insurance Contributions.
Pension Awareness Week provides a great platform to raise the issue but of course, as a supportive employer, it’s important to recognise that this is in fact an ongoing conversation that one should be having with staff. No matter what stage your employees are at on their financial journey, trying to build security and stability, accumulate savings or optimise wealth is absolutely critical to your employees’ long-term wellbeing and happiness.
Supporting employee financial well-being is win-win for SMEs
The pensions landscape can be a daunting one to navigate alone and enjoying a healthy relationship with money and feeling in control of their pension is an important first step to employee wellbeing. Broadstone can offer as little, or as much support as your pension members need. In addition, of course, as a service provided by you, the employer, it’s all very positive PR for your business but also demonstrates to your teams that you genuinely want to empower them to take control of their finances and enhance their financial knowledge.
I’m happy to have an informal chat to see how you think we could help your business and your staff. Remember a pension is for life and not just for Pension Awareness Day!