Pension awareness is vital for your business and your employees. Statistics show that 6.3 million employees are still not paying into a workplace pension. This means that they are not making the most of matched employer pension contributions and are therefore not optimising their pension. If as an employer you are not ensuring that your employees are paying into a workplace pension, staff wellbeing will suffer, resulting in problems such as financial stress and an increase in sick days taken due to poor mental health.
Research from Fidelity International shows that nearly a third of pension savers have had to delay their retirement due to the pandemic and its financial implications. This highlights why pension awareness is more important than ever. As an employer, educating your employees on the best way to optimise their pension and how to prepare for their retirement is an investment in the success of your business.
How employers can support their employees’ pension wellbeing:
On this pension awareness day, we want to help educate you as an employer on how to help your employees to take the first steps towards pension awareness and wellbeing, also highlighting how Mintago can help support you and your employees throughout this journey.
According to research, 35% of people (18.4 million Brits), either have no pension at all or are unaware that they have one. This is worrying for several reasons. Employees who do not have a pension or are not contributing enough to their pension, are not likely to be able to retire at their desired age, instead having to continue to work to live and afford essentials. Those who are unaware of how much they should be contributing to their pension to achieve their retirement goals may discover later on in life that they do not have enough time left to save enough for their retirement. They are likely to face the scary truth of not being able to afford to make large enough contributions to their pension in time for their retirement.
The younger your employees are when they become pension aware, the better for both them and your business. It is suggested that an individual should take the age that they start paying into their pension, half this and then contribute this to their pension every month for the rest of their working life. Therefore, an employee who is pension aware and begins contributing to their retirement at age 20, would only need to be contributing 10% of their total income towards their pension every month. However, an employee who is 40 when they start to contribute to their pension is likely to have to contribute 20% of their total income every month to their pension to retire comfortably. This will be much more difficult for them to afford and may see them having to choose between a smaller monthly income and a smaller overall pension pot.
As an employer, you can play a vital role in encouraging your employees to become pension aware. By communicating with your employees about the risks of not saving enough towards their pension and starting an open conversation about ways in which to optimise their pension, you can help them to feel empowered to make the right choices for their future. By providing your employees with the tools and education they need to learn about pensions and why they are important, you can make sure that you are doing everything you can to take care of their overall well-being. After all, this is your duty as an employer.
How Mintago can support your business and your employees:
Mintago can help you to support your employees towards better pension awareness and overall wellbeing. Our pension experts are always on hand to answer any questions that you and your employees have about pensions and how to get the most from them. Mintago’s pension dashboard provides a visual aid for your employees so that they can see how much they need to be saving towards their retirement to achieve a comfortable one. They can adjust their total contributions to see how much they will have when they retire at a certain age. Knowledge is power! Mintago’s Pension Hunter service helps your employees track down lost pension pots from previous employers, again ensuring that they make the most of their hard earned pension contributions and are in the best position possible when they come to retire.